MadMax. I think you misunderstand my point. We have already established that going long/investing in a company float or capital raising does have a "real" effect of providing funding for a company that you belive has good prospects. But that will only work if there is a mutually beficial arrangement - i.e. the chance to pass on your shares for a profit. Hence without the ability to go long and sell your shares no one would ever participate in the float or cap raising in the first place. So going long / investing in the secondary market is essential to the very existence of the primary market (IPO, cap raising etc).
Shorting on the other hand is not at all needed for the above process to occur.
