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
Because capitalism doesn’t care for morality or ethics as it is not a system involving behavior, it is a system which cares about profit.
Shorting is a path to profit for a company that is going to fail. Going Long is a path to profit for a company that is projected to do well in the coming months. Options and Hedges are systems to help you mitigate losses by having counter balances and thresholds to get you out early or help offset those losses with some wins.
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