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Forum nameGeneral Discussion
Topic subjectNah
Topic URLhttp://board.okayplayer.com/okp.php?az=show_topic&forum=4&topic_id=13421760&mesg_id=13422006
13422006, Nah
Posted by PimpTrickGangstaClik, Wed Jan-27-21 11:07 PM
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<and shorting should be illegal
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Short selling allows prices to more accurately reflect people's opinions on the company. If shorting were illegal, only people optimistic about a company (buyers) would be able to participate in the stock. So the stock would be overvalued.

Short selling allows pessimists to participate too, which should bring prices closer towards their "correct" values (i.e. reflecting all information and opinions).