People who support short selling claims that it keeps the market in check. If that was the case why did the regulators ban short selling in bank stocks??
The Simple "educated" answer is if shorting gets out of hand and it does thanks to hedge funds, shorting can do alot of irreversible damage to a stock and subsequently to the company. So for example if there was no ban in shorting MQG and it tanks to 1-2 dollars it woundn;t have been able to raise funds to get its balance sheet back into shape and it would have probably have gone under like BNB.
So for those who support short selling just because others dont agree with you doesn't mean that they are uneducated or are morons.
BLY Price at posting:
19.4¢ Sentiment: LT Buy Disclosure: Held
