Comment by intalentive
6 months ago
Correct me if I’m wrong but doesn’t short selling only harm bad companies? If a strong company comes under selling pressure from shorts, then it can buy its own stock back at a discount.
6 months ago
Correct me if I’m wrong but doesn’t short selling only harm bad companies? If a strong company comes under selling pressure from shorts, then it can buy its own stock back at a discount.
No. Shorting can damage reputations which don't bounce back or if it choose a particularly bad spot for a company it could sink it.