CMR 0.00% 15.0¢ compass resources limited

wonder if, page-12

  1. 1,118 Posts.
    The voice of reasoning for shorting is this:

    If you can borrow money to invest in stocks (i.e. you are buying more stock than what you can naturally afford) and create an "artificial" amount of demand for a stock through leverage...

    then...

    It is a natural counter-balance to the falsifying impact of leverage, that one has the option to short-sell a stock. It is as close to an "opposite" of leverage that you can get.

    There is risk on both sides.
 
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