4 ms·

It also bankrupts viable businesses, when there is more short speculation than long speculation.

• nradov 6y ago
  No that's false. Short selling a stock doesn't reduce the business's assets (except for treasury stock) or increase it's liabilities. Even if theoretically short sellers drove the $GME share price to zero the GameStop business would still exist.
  • felipeko 6y ago
    But it will make it more expensive than otherwise to raise capital. That can make or break any company.
  • snarf21 6y ago
    It could also make it harder to attract talent if compensation includes stock options.