The notion of what short selling is by a few on this thread is by far and far ridiculous. Who the hell will buy those shares that don't exist? By this logic, say there is a short position in company A of 10%. That would mean a takeover of company A would have to buy 110% of that company... so how many company takeovers have reported such things? that they've bought 110% of a company when they wanted only 100%? Jeez talk about nonsense.
And this idea that without short selling we'd have a more orderly winding down of distressed companies like CNP, BNB... jeez, if a company is worth ZILCHO and there is $100m capital in that company... then that capital must also be reduced to ZILCHO. That's why such companies are heavily sold down, take what remaining capital you have and run. All that happens by short selling in such scenarios is the distribution of a portion of that capital to the shorter. If the shorter wasn't there, then it'll go to someone else...
