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
It allows for faster and better price discovery.. it is bad for the economy as a whole to have money tied up in failing companies so shorting allows negative information to effect stock price which makes the market more efficient.
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