Why is "the whole short process is highly questionable. But legal it is..."?
Buying stock is legal, and not questionable. If we think it is going up, and we buy it we either:
1. Got it right & make money
2. Got it wrong and lose money.
Short sellers just have the other view. Get it right or get it wrong, the outcome is the same on both sides.
The only difference is that if we buy it, we may keep it for ever. A shoprt seller has to get his timing right as they have stock borrow and funding charges, and they can be forced to buy back if the borrow tightens or the funding costs increase.
Hedge funds short things, it is how they try to make money. Buy what you think will go up, and sell what you think will go down. Or, even if you like 2 companies, hedge by buying your favoured one and sell the least preferred. Is quite a simple process. Not always ulterior motives. Just people trying to make money.
I also don't agree with other comments on here that short sellers come on here to spam and scare mums and dads. Guys, please understand this is the teeny weeny little baby pool of the big wide investing world. The big boys in the deep-end couldn't really care what thoughts or emotions are running wild here....
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Open | High | Low | Value | Volume |
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3 | 1904 | 7.830 |
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Price($) | Vol. | No. |
---|---|---|
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