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> I honestly don't know how you can believe this. Well, it's actually pretty easy. 1) In theory, it can't happen. 2) And in practice, it doesn't happen. It
by Lazare 5y ago
> I honestly don't know how you can believe this.
Well, it's actually pretty easy.
1) In theory, it can't happen.
2) And in practice, it doesn't happen.
It doesn't get much more cut and dried than that!
> If they drive the price so low that the company is unable to manage its debt
....that's a bit like saying short selling costs lives, because if short sellers drive the price so low that the headquarters catches fire, people might die in the flames.
See, the problem here is that driving a share price down doesn't stop you from managing your debt. Which is a key reason why there are no documented cases of short sellers driving healthy companies into bankruptcy.
- OnlineGladiator 5y agoYou moved the goalposts from "it's impossible for shortsellers to bankrupt a company" to "it's impossible for shortsellers to bankrupt a healthy company." Rather than continue to argue and get nowhere, let's just disagree. Have a good night.
- Lazare 5y agoOkay, let's steelman the argument then. Short selling a company's shares cannot bankrupt the company. Happier? (Again, I say this because there is no theoretical mechanism by which selling stock short can realistically cause bankruptcy - contrived examples to the contrary. And we know they're contrived examples because it's never actually happened.)
- OnlineGladiator 5y agoWhat part of "disagree" do you not understand? There is no resolution here. I know you're wrong and you know I'm wrong. QED.