The Why, Who and How of Stock Loan and Shorting

September 7, 2022

Frank E. Testa, CMT


ARE ALL SHORT SELLERS EVIL?

While companies dedicate a significant number of resources and time to keeping abreast of their shareholders, when it comes to short sellers, unfortunately, information is extremely scarce. While this secretive group are hoping for the stock’s decline to profit, not all short sellers are necessarily bearish. In the following two examples, neither seller has a negative opinion of the stock or company. 

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