3 ms·
Value is only what someone is willing to pay for an asset. Shorting the stock allows you to profit off of your knowledge that the stock is overvalued compared t
by tg3 12y ago
Value is only what someone is willing to pay for an asset. Shorting the stock allows you to profit off of your knowledge that the stock is overvalued compared to what the market thinks.
But remember, the market can stay irrational far longer than you can stay solvent.