• NegativeInf@lemmy.world
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    7 months ago

    Short selling helps prevent stock market bubbles by correcting overpriced stocks, ensuring prices reflect real value. It also allows investors to hedge against potential losses in their portfolio, making the market more stable and efficient.

    • DragonTypeWyvern@literature.cafe
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      7 months ago

      That’s what stockbrokers say, sure. They don’t actually care, they’re brokers. They make money from the sale regardless, and the more kind of sales and services they can make and charge for, the better off they are.

      Especially when it helps create a labyrinth of industry specific terms and rules they know and you don’t.

      That’s why they were laughing at the GME bullshit, like Redditors thought they were the ones losing money. Every little retail trade had a percentage that went into their pockets.