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Short Sellers Help Stocks Find Their True Values and Expose Fraud, Despite the Hate They Receive

investing 19 mins ago Short selling has always been a controversial practice, often blamed for causing drops in the market. The Securities and Exchange Commission eventually stepped in to better regulate short sales after short sellers were once again blamed for a market decline in 1937. I think the main reason people dislike short selling is that something just feels bad about profiting from someone else s failures, said Sasha Indarte, an assistant professor of finance at the University of Pennsylvania s Wharton School. Short sellers gain when someone else loses. It s like if you took out an insurance policy against your neighbor s home and your neighbor s home was destroyed.

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