What’s the purpose that benefits the whole of the economy? I don’t understand it’s purpose other than to bet on a losing stock. Is it purely for hoping a business will fail? Where is the benefit outside of the individual shorting? The idea of shorting a stock seems unmoral and unethical. Basically why is shorting even allowed to be a thing?
In: Economics
Why does shorting have to benefit the whole economy vs. being beneficial to an individual investor/individual firm? It’s not like it actively harms a company that people are shorting its stock.
It’s just a way for somebody to try and make money when they think a company/stock will decline in the future rather than only having ways to make money when stocks go up.
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