GREY:ALGWF - Post by User
Comment by
TONNAGEon Jan 31, 2018 2:03pm
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Post# 27472693
RE:RE:RE:RE:RE:RE:RE:RE:New Investors - Help build a price Wall - limit sell order
RE:RE:RE:RE:RE:RE:RE:RE:New Investors - Help build a price Wall - limit sell orderGreat recommendation from URLaughable3! I didn’t know this either. But was just wondering, I read somewhere that shortest also help the market by shorting. This blurb from investopedia explains it but I don’t feel it applies to ACG because I don’t think it’s overvalued. Not to say it isn’t being manipulated.
While it is true that investors with a short position in a security make money when the price of that security declines, that does not necessarily mean that profit for a short seller equals a loss for everyone else. For instance, if a security is overvalued by the market, investors may not be willing to purchase it at its market price. A short seller in this case would profit from the security's price returning to its true value, and investors unwilling to pay the inflated price could then purchase the security at the lower price.
Short selling strengthens the market by exposing which companies' stock prices are too high. In their search for overvalued firms, short sellers can discover accounting inconsistencies or other questionable practices before the market at large does.