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> Even if you tried to stem the drop, the short sellers can just borrow even more stocks and continue to overwhelm you with selling pressure. The problem with
by peterbonney 5y ago
> Even if you tried to stem the drop, the short sellers can just borrow even more stocks and continue to overwhelm you with selling pressure.
The problem with this kind of reasoning is that it applies even more strongly in reverse, because herds of long-oriented speculators aren’t bound by the need to borrow stock or sell on an uptick, etc. Short-oriented speculators need capital, stock borrow, and upticks to sell stock. Long-oriented speculators just need capital.
- bedobi 5y agoAgain, should be true but often simply doesn't play out that way in practice. The stockholders may be very diffuse groups of people, or mostly represented by proxies (eg fund managers) that don't have any real incentive or ability to organize a counternarrative and counterdrive to counteract concerted, well organized shorting, with all that entails in terms of media FUD etc etc. Hell, even in cases where long oriented speculators really do bite back, and in even in the fraction of those cases where they're able to have any success, they still get ridiculed in the media and in the industry.
- peterbonney 5y agoCan you give some examples where something like this played out the way you describe? Even a single example?