Clarityprovided comments

Posted in: Short-sellers smell blood as Japan Inc wounded by accounting scandals See in context

@bullifghter - There were 4 congressional inquiries into short selling in a few years after the 1929 crash looking for short sellers to be the scapegoats. They all failed to find that was the case. People want to blame short sellers rather than acknowledge they were too greedy and bought on false hopes and unrealistic dreams and valuations. Those eventually fall back to earth. @danalawton1 is correct. Short sellers have the view that a company's price is too high and will fall for any number of reasons. The article points out Sino-Forest which was accounting problems, identified by short sellers and the issue is that there was a negative view on Muddy Waters for pointing it out, not the company for falisfying records! @takeda.shingen.1991 makes a number of good and accurate points. Short selling is indeed very high risk, so the traders taking positions need to be confident of problems and so make a valuable contribution to stock price discovery. That is why IOSCO, the association of 95 global regulatory organisations say it is a valuable part of the capital markets.

3 ( +3 / -0 )

Recent Comments

Popular

Articles, Offers & Useful Resources

A mix of what's trending on our other sites


©2024 GPlusMedia Inc.