Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

The article also deals with the parts about actually defaming, attacking in courts and otherwise doing everything possible to actually bankrupt the company...

It doesn't only cover the stock market, it covers the whole operation, which goes way beyond only the stock market.



Rules already exist around what you can and can't say as a short seller. What is it that you don't like about them? Do you think no one should be allowed to say negative things about companies?

Shorts can't drive companies in the ground if that's not where they're headed anyway. First of all most short sellers are not activists. The perception that shorts causing companies to tank is because activist short sellers are right a high percentage of the time so often their reports result in a quick price adjustment. Being an activist short seller is a very high risk activity so they tend only to pull the trigger when they have high conviction. For example I'm not sure Muddy Waters has ever been wrong in calling out an accounting fraud. I have a really hard time buying the line that short sellers bring down good companies (examples?) and the fact that people do think that seems to me more of an indication of the power of corporations and their management than anything else.


I was answering to the points about "the stock market should not kill an healthy company".

This article isn't about the stock market, it's about short sellers and the activity of those isn't contained to the stock market.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: