4 ms·
THEY are the people that can openly game the market pricing mechanism with no implications. If there are 5 apples in the world, but I can go to the market and
by ycombigator 6y ago
THEY are the people that can openly game the market pricing mechanism with no implications.
If there are 5 apples in the world, but I can go to the market and sell 10 of them, that market does not reflect the real price of apples.
Even more so if after that I can pretend to sell apples at even lower prices back and forth between me and my mate, who's also been selling apples.
- pelliphant 6y agoI think that the problem here is that the group "them" are on both sides. Sure, you can hold some stock to hurt some "them"s, but at the same time, you will help other "them"s.
- addicted 6y agoYou’ve got this completely backwards. Short sellers by definition have massive implications. And worse, they have limited upside and theoretically unlimited downside. Unlike the bulls who have limited downside and unlimited upside. And that’s before we get to the fact that the markets are rigged against short sellers (e.g., there are circuit breakers that pause trading activity when prices are plummeting. There is no such circuit breaker when prices are rising steeply). There’s also massive information transparency issues. Pretty much everyone who is charged with making private company information public has extremely significant financial incentives to skew that information to be as positive as possible.