Re:Suck It, Wall Street
by ashtonkem on Friday January 29, 2021 @02:57PM
(#25961610)
> Short sellers are effectively betting against the success of a company
And when a company is overvalued or committing fraud, that is a good thing. Stopping a bubble from growing is how you reduce the harm inflicted on regular investors.
> which gives them an incentive to do everything in their power to put that company out of business
And the long position is incentivized to hype up a business up to and beyond the line of fraud.
Both sides of a financial transaction can perform their duties fairly, or corruptly. Life is not so simple as to declare only one party the problem.
And when a company is overvalued or committing fraud, that is a good thing. Stopping a bubble from growing is how you reduce the harm inflicted on regular investors.
> which gives them an incentive to do everything in their power to put that company out of business
And the long position is incentivized to hype up a business up to and beyond the line of fraud.
Both sides of a financial transaction can perform their duties fairly, or corruptly. Life is not so simple as to declare only one party the problem.