5 ms·
Re: shorting. If people who believe a company is undervalued are allowed to trade based on that belief then people who believe a company is overvalued should be
by jpmoral 3y ago
Re: shorting. If people who believe a company is undervalued are allowed to trade based on that belief then people who believe a company is overvalued should be allowed to do the same.
- dekhn 3y agoAre shorting and longing symmetric? IE, do they influence the market in the same way? They seem much more complicated than straightforward stock purchase and fractional ownership.
- jpmoral 3y agoDon't know enough to say but I would guess so.
- hcks 3y agoIn the generic case: Longing == buying a share Shorting == selling a share
- pjacotg 3y agoI'd add to that and say shorting is typically selling a share that you don't own. Which means you need to borrow it from a broker for a fee. There's a securities lending market which revolves around borrowing and lending shares for these reasons.
- nvm0n2 3y agoYes, they're symmetric. Shorting is logistically a bit more complex than going long, but that's not an argument against it. After all, buying stocks is itself more complicated than buying land, and buying land is more complicated than renting, etc.