Empire State Building

[Bernardo de La Paz]

2. Nothing wrong with short-selling, per se. It can be desirable and is very legitimate.

There are ways of short-selling that are wrong just like there are ways of buying that are wrong and ways of long-selling that are wrong.

In a well-regulated market, short-selling can stabilize a bubble and prevent a larger crash. By depressing prices, it helps wring out excessive enthusiasm for a stock or stocks. Thus it can actually cut losses experienced by late entrants who buy at the top.

To condemn short selling per se reveals a misunderstanding of stock markets.

As written, you did not place a value judgement on it in the post, but I wanted to be clear for those who do not understand the functionality and technical aspects of the system.