If the market weren't already really good at arranging this the properly calibrated CEO would tell investor relations to organize dinner parties for shorts so that they could find your long-term investors, spare briefly on the merits, and then write checks to borrow their shares.
-
-
Show this threadThanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Yeah definitely thought you were talking about pants at first.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Those are called market makers
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
I agree that short selling is perfectly fine, but are you sure about the “without needing longer term holders to sell” rationale? I am thinking of https://www.philosophicaleconomics.com/2013/08/the-great-rotation-asset-shortages-and-the-aggregate-u-s-investment-portfolio/ … which had an enlightening explanation of what happens in this scenario.
-
Specifically, where
@Jesse_Livermore said: “If there is more financial wealth that wants to be allocated into an asset than exists of that asset, the market price of each share of the asset will rise, which will expand the supply of the asset so that the demand can be satisfied.”
End of conversation
New conversation -
-
-
See here I was thinking that shorts were good because they kept my legs from getting sweaty
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Fair enough, but in the last decade or two the problem with some shorts (hedge funds etc.) is that they don't just take a stock position. They go on intense negativity campaigns...
-
The purpose of a hedge fund isn’t to precipitate a collapse in the market but to allow those with exposure to reduce their downside risk. They don’t usually make great returns at it comparatively.
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.