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Re:Counterfeiting Stock – Explaining illegal naked shorting ... by alisonkisk on Monday February 01, 2021 @08:27AM (#25988456)
It also bankrupts viable businesses, when there is more short speculation than long speculation.
Re:Counterfeiting Stock – Explaining illegal naked shorting ... by nradov on Monday February 01, 2021 @08:42AM (#25988568)
No that's false. Short selling a stock doesn't reduce the business's assets (except for treasury stock) or increase it's liabilities. Even if theoretically short sellers drove the $GME share price to zero the GameStop business would still exist.
Re:Counterfeiting Stock – Explaining illegal naked shorting ... by felipeko on Monday February 01, 2021 @08:51AM (#25988654)
But it will make it more expensive than otherwise to raise capital. That can make or break any company.
Re:Counterfeiting Stock – Explaining illegal naked shorting ... by snarf21 on Monday February 01, 2021 @10:11AM (#25989295)
It could also make it harder to attract talent if compensation includes stock options.