4 ms·
That sounds a little bit like "If I can tell this company is defrauding investors, how can I get in on the fraud?" Whoever you borrow that stock from is now you
by feoren 3y ago
That sounds a little bit like "If I can tell this company is defrauding investors, how can I get in on the fraud?" Whoever you borrow that stock from is now your mark that you are defrauding -- indirectly, of course, since you're not forging fake results or something. It still feels icky.
- CoastalCoder 3y ago> That sounds a little bit like "If I can tell this company is defrauding investors, how can I get in on the fraud?" That's not how I meant it. I was thinking more generally about pre-IPO companies that you think (for reasons that you can legitimately use when investing in this manner) have dim prospects.
- pessimizer 3y agoIt's not you that are doing the defrauding. You're betting that it's a fraud and not trying to convince anyone of anything. Lack of short-sellers increases fraud, it doesn't reduce it. Nobody spreads more anti-short seller animus that people trying to commit fraud.
- 8note 3y agoI think it's instead, "how can I get paid for calling it a fraud?" If it is a fraud you're rewarded, if it isn't a fraud, you're punished The marks are screwed regardless, but they're betting against you, claiming that it isn't a fraud, against your evidence that it is