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11,405 Posts.
1588
23/09/16
16:52
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Shorting is NOT the reason.
The reason is someone thinks the stock is worth less than its current price today.
Shorting is just the TOOL of use.
The same tool you and i use to BUY up stocks when we think future price is higher than current.
The system provides a way of making money on the ups as well as the downs, it's not restricted to one way traffic only.
It's a tool.
Sophisticated investors use them well.
AND yes, surprise, they do automate some of these as well (we like to call the BOTS).
It's all part of the game....
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