: What is the economic benefit to short a stock?

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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

20 Answers

Anonymous 0 Comments

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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