Re:Counterfeiting Stock – Explaining illegal naked shorting ...
by auntienomen on Monday February 01, 2021 @08:20AM
(#25988396)
There's a fallacy in your claims. Shorting affects the owners of the stock. But publicly traded companies don't normally own a large amount of their own stock. Their stock price doesn't have that direct an effect on their balance sheets. It affects their credit worthiness, but not in a mechanistic way. (Believe me, Gamestop isn't finding it easier to borrow just because its price has gone bonkers.)
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Re:Counterfeiting Stock – Explaining illegal naked shorting ...
by formerly_proven on Monday February 01, 2021 @09:40AM
(#25989053)
That's also a key reason why market cap is relatively meaningless outside of the actual stock market. E.g. TSLA has a giant market cap for an automaker, but that has no real operational impact and has essentially no relation to their behavior and performance in their market.