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Short-sellers are part of the free market. They are how the equation balances itself when trying to find the "true value" of a concern, or at least an approxim
by sangnoir 6y ago
Short-sellers are part of the free market. They are how the equation balances itself when trying to find the "true value" of a concern, or at least an approximation thereof.
Obviously the person who owns stock, or is set to earn billions when the share price reaches a certain level is going to be adversarial to someone whose actions result in the share price being depressed - even if that is the fair value.
> Large funds making public bets against a company have a material impact on that company's liquidity.
There are always bigger fish - and if the public bet is wrong, someone can, and will earn money at the funds' cost.
Edit: shareholders dislike shorts the same way employers dislike employees sharing salary information; it's a losing proposition for them, but a fair one.
- qes 6y ago> Short-sellers are part of the free market Not when they get to simply turn off the half of the market moving against them they aren't.
- stonogo 6y agoI would like you to show me where this free market is, because it certainly isn't NYSE. The minute anything unexpected happens we're hit with trading halts, brokers riding the line of insolvency, SEC investigations, and congressional freakouts.