RE: RE: Shorting - an unnecessary toolOh dear Hipppygirl74. Liquidity - not a very good candidate for your side of the debate I'm afraid.
Here is the official definition of liquidity (not my words) -
'Market liquidity is a business, economics or investment term that refers to an assets ability to be easily converted by the act of buying or selling without causing a significant movement of price and with minimum loss in value.
Doesnt sound much like what happens when stocks are shorted to me 'WITHOUT CAUSING A SIGNIFICANT MOVEMENT OF PRICE AND MINIMUM LOSS IN VALUE'
Still keep the explanations coming maybe someone has something more convincing.
Personally I'm of the opinion that short selling has and continues to be part of the problem that needs to be addressed for the well being of the longer term future of the market