Re:Wall Street was the real winner of the GameStop saga
by NovemberWhiskey on Monday February 07, 2022 @03:05PM
(#30250240)
>I disagree since that would give people decision making capabilities who are the least qualified to do so.
It's unclear why investing in the belief something is overvalued demands a different or larger set of decision making capabilities than the belief is it undervalued.
Re:Wall Street was the real winner of the GameStop saga
by ascagnel_ on Monday February 07, 2022 @08:51PM
(#30254032)
Selling short carries much, much more risk than a simple purchase-and-sale. Put simply: if I buy a stock, the most money I can lose is the principal I put in (a stock can’t drop past zero), and any losses I take don’t damage others. In the case of a short sale, my potential losses are limitless (while a stock can’t drop past zero, there’s no potential ceiling), and the party lending their stock may lose out if I’m unable to cover a call.
I disagree since that would give people decision making capabilities who are the least qualified to do so.
> And this ultimately serves the greater good too
You can believe that but you also don't have to.
We don't have to lie to ourselves. Stocks are highly emotional and investors regularly overpay when they buy into hype. I am not against short selling, it is a trade like any other. But let's keep things honest.