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
so, you are really asking – why are we allowed to short stocks……
its our money; why cant we bet that a company will fail? its almost the opposite of regular investing where we buy today in hopes the price rises in the future
short sellers keep money in circulation, which is a generally good thing for an economy.
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