>if you buy a stock, you believe, and are indicating, that the stock is undervalued. That's not true. You could believe that the company is stable and gives a

>if you buy a stock, you believe, and are indicating, that the stock is undervalued. That's not true. You could believe that the company is stable and gives a good dividend each year. It could be valued perfectly well and you'd want to buy it because it would be precisely worth it to you. less than or equal, essentially, not simply less than. >Short selling is a valuable way to indicate that you believe a stock is overvalued whenever you don't own the stock. I don't think this is true, because the reporting on shorts isn't constant and because traditionally it's a far smaller community. It's a valuable way to indicate that SOME people believe a stock is overvalued and seems to have been used as a replacement for independent research and valuation of a company.