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
Here’s a question for you to ponder.
Whenever stock changes hands there is a buyer and a seller.
Your post sort of implies buying stock is inherently virtuous or moral, they’re “endorsing” or “investing” in that company to do better. Cheering it on that it succeeds so they get more money.
But what about the seller? Aren’t they doing the exact opposite? Not endorsing the stock? Disinvesting? Saying it will fail so they’re getting out?
But there can be no buying without selling!
The point I’m trying to make is that there is NO inherently virtuous action in this market. All parties are completely self interested. In fact having high stock prices and feeding frenzy over a company’s stock isn’t always a good thing! rapid over inflated gains can affect a companies behavior for the worse!
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