Short selling isn't the issue!!! We traders aren't against shorting. But when the big players short 140% of a stock then Robinhood bans buying... Well then that's the issue

as already mentioned, short selling is fine... it's brokerages that stop the buying during a squeeze to protect their hedge funds, that's illegal.

I'm totally fine with short selling. The issue I have is around how when some of the larger funds are going to lose, the system works to prevent that from happening. If a large hedge fund is going to lose billions because smaller players are buying a stock driving up the price, the big guy shouldn't be protected by the system. You can bet that if I short a stock that goes up a ton there is no way that Robinhood, etc are going to protect me. As always, the rich get richer. But here (and the 2008 bailouts) we see that when there is a chance that the rich could not get richer the system (and by extension all of us) prevents it from happening.

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.

We are not against short sellers ..what we don’t like is when big hedge funds tell banks to raise price targets then short sell right after that ..it’s a dirty game full of fraud.

Short selling is legal so hedge funds can control prices and play the market both ways... its a racket...

The stock market is one of the most potential places to invest your money, investing in stock is often risky which draws attention to the huge losses and gains of investors. If you can manage the risk then you can take advantage of the stock market to secure your financial position and earn money

its legal because it supposedly keeps markets liquid. Its actually betting and nothing more then that. Sad but it is nice to see the short sellers get hammered and be wrong

The issue isn’t shorting, the issue is companies like robinhood protecting their friends in Wall Street.

"giving false or inaccurate hits of information, that's what is wrong with long or short selling..." -says CNBC

I like how big companies are allowed to do this and dump on us but when the little guy gets one over on you. Now it should be illegal.

Funny that this is only an issue now that the common man is making money

The problem isn’t short-selling, it’s short-selling a 140% of a stock.

Short selling isn't the issue. NAKED short selling by these institutions is the issue.

The real issue never ever gets covered ever....NAKED SHORTING !!!!!!

There is something called calculated risk and stop loss. So why is shorting an issue. Bruv. The main issue here should be why fund are trading naked.

The liquidity argument for short selling is absolute BS. If there's no shares to buy at a lower price, you just buy at a higher price. That's actual supply and demand.

The fact Mr roaring kitty had to defend his actions despite purchasing stock in a freemarket proves there is a fundamental problem with short selling. If short sellers are happy losing billions when shorts go wrong then there is no problem

I like how they saw the rule was eleminated right before the 2008 crash. What a coincidence......

When paper stocks converted to online nominee accounts the ownership of the stock was stolen from the buyer to the dealer. It should be illegal to make money renting and selling someone elses asset to scare them into selling it at a lower price! Imagine if they did this with your other assets like your house or your car, you would rightly call them thiefs and fraudsters!

The biggest issue I have with shorting is that you can have people short more stock than actually exists. Sure, it creates liquidity, but it's doing it with assets that don't actually exist. That's just asking for exploitation from all sides

Shorting isn't the issue, hedge funds selfish use of shortselling is

CNBC didn't cover unethical practice of short sellers such as CITRON, who after shorting a stock go on TV and claim that the company in a terrible financial condition, there is no way it will ever make money, and you'll be lucky to SELL NOW. If not covered the bad practice seems non existent in this report.

2:20 "the ONLY way to make money off that is to short the stock" so puts suddenly don't exist now?

short sellers can help keep the market and companies honest; as long as they are transparent and not deliberately sabotaging stock prices for quick gains.

NBC: "Here's why short selling is legal. We need to be able to place bets on when someone dies"

You don’t become a billionaire by getting up early and working hard everyday, you become one by stealing it

The borrowing of shares, ESPECIALLY when you can borrow more shares than should be available, and selling them below asking price in order to drop a stock price is a very easy way to drop a sp. That combined with services always try to get the best available price when stocks are purchased, makes tanking a stock price way to easy. I hate it, but idk what the answer is

I don't think there is anything wrong with betting on a company doing poorly, having too many people bet against a company could incentive the company to get their act together and fix things or it could help to put the real value on a overpriced company.. The real issue I see is being able to bet against a company using something that you don't own, that's just bizarre.

When big players profit and lose: Ok When too many small players lose: Ok When too many small players profit: NOW HOLD ON THERE

The stock exchange is fundamentally broken in need of an overhaul to bring it up to speed for the digital age.

Short sellers in stock market = gamblers in casino.

Shorting hasn't been an issue until Wallstreet traders lost.

Gamestop stock was shortened 120% !!! It has nothing to do with "...providing liquidity to the market.." It was purely an attempt to move price down from few powerful hedge funds.

Which investment is profitable right now?

Answer: Because it's another way to make money, why did you think? If something is going to go down you have the ability to make money from it. And it's not like short selling is immoral they're going to go down anyway and short sellers often see things other's don't, they have they're own place in the market like everyone else.

When it's the funds and billionaires making money by exploiting the ordinary investor it's ok but when the investor does it and exploits the rich people start questioning whether it's illegal .The hypocrisy 🤦🏽‍♂️

I hope short selling becomes illegal. I don't want anyone to have the ability to make money when the market goes down because I don't want anyone to have an incentive to lower stock prices. I don't trust big players to play fairly. It hurts investors and the entire economy. If the big players make plenty of money in a crash there will be no reason for them not to coordinate and send stocks lower. Good luck enforcing ethical rules on some of the richest people on the planet. We need to make it in everyone's interest for stocks to appreciate or we can all enjoy clawing our way to the bottom.

So... it's gambling. 'Risk management, market analysis, hedging etc. etc.' is just 'guessing, looking at the form guide and spreading your bets' - gambling. Can't we just call a spade a spade.

Well well well, when it’s pinching them, they Q whether shorting should exist in the first place. Nice. Until now when they were making profits, yeah shorting is cool.

Selling what you dont own...that's the issue - causing stop lose to trigger not because the company resources /project/pipeline etc is not at the rendez vous- but because cartels are allowed

Why CNBC is llegal??

Back when I was President of the United States of America, There was a crash in the Stock Market in 1929

thought short sellers were people who were short and sold stuff

I think there are a lot of valid points and definitely educates a lot about what short-selling is, but personally I think the issue is when short-sellers are able to short more than 100% of the available float, which can exacerbate short squeezes as those who are short rush to cover, but can't because there aren't even enough shares to cover!

Short selling has never made any sense to me. In one sense it's like you're getting someone to agree to give you money. In another sense it's like you're placing a bet with your broker. It has a loss side that would make a Las Vegas gambler blanche.

We’re not against short selling that’s needed to balance things out, we’re against naked short selling

The problem is the role of large scale leverage or borrowing in the investment process. Banning leveraged buyouts and short selling would lend much more stability to financial markets with better outcomes in the labor market: the market the majority cares most about.

Imagine bullying someone with a dream and profiting off of it.

Question should be: should short be public and transparent?

Nope. Your borrowing someone's stocks to drop the price, thus stealing profit from the original owner. All of this with no up front money. The market should be for investing into businesses, not gambling against them.

Ignore gg (or report him). He’s a bot.

Cumon guys. You borrow something from someone, sell it, then buy another at a cheaper price so that you can give it back... what could possibly go wrong...

8:44 "They're visiting companies," If institutional investors are discovering things by visiting companies, then they are trading in insider information.

"It's OK when we do it" - rich people

That's interesting that short selling has been banned before. What if you're holding a shorted stock when the ban goes into effect?

I like this you guys really evened out the playing field

Short selling sounds unethical. You should should gain money by making a beneficial service or product !

I feel like a lot of commenters have already said this but just to emphasize the point: Short selling isn't the problem. Over-shorting is the problem - ie what happened to gamestop where 140% of the stock in circulation was shorted...

Would like to see a video about the connection between the market and social media posts. Like he said at the end.

Shorting is fine and provides a good balance to the overall market. The problem, which this video does not cover are that of predatory shorting where an organization will take a large short position on a company, and then purposely tries to sabotage the stock price through false and misleading "research reports", spreading rumors on media and social media. The ultimate goal of a shorter is to have the company being shorted fall into bankruptcy at which point, the shorter will not have to buy back the shares and return it to the brokerage, thus keeping 100% of the initial collateral. The brokerage will write it off as a loss on their books.

Why are people putting their money into Hedge Fund at all? Most don’t even beat the market, and they charge you shitload of fee that line up their pockets.

Shorting is a very important component of the market in many ways. It allows people to tell the market that they think gamestop or whatever other company is a bad investment. HOWEVER, when regulators and big players work together to obviously benefit the institutional investors, that’s when the issue comes in.

The real issue is stock markets shouldn’t be the driving force behind economies people’s livelihoods shouldn’t be put as risk for profits To make things worse since 2008 central banks are printing and endless supply of money to prop up the markets the only people benefiting are the rich that money go’s to them not the average person while there wealth increases year after year it’s the average person who’s going to ultimately pay with inflation and taxes Rich people don’t care if the dollar is worth half of what it used to be because they have Assets that will only increase in value over time the average person can’t even afford a home the system is rotten to the core

I’m only a couple minutes in to the video but did they completely just gloss over the fact that this is a zero sum game? When someone sells a stock short and makes money off it, someone else sold them that short and lost the same amount of money.

So the trick is to double down on your choices. Really try and screw the other company.. Seems kinda narcissistic imo

Hey you got Ihor on here. Nice!

Only illegal when it’s regular people doing it

0:34 Like Ryan Gosling said in the Big Short.

The issue isn't when big companies simply 'take a punt' on the outcome of a business, it's when they become actively involved in its downfall. Thomas Cook, here in the UK, was a prime example of that. Short selling traders employed PR companies, circulated bogus rumors and more. In the end, the company went under, employees and investors lost everything and a small number of companies made a fortune.

It's easy to manipulate, infiltrate and dictate the failure of a company if you are an insider. You could set in motions the factors that would lead to a company failing, whilst investing in a acquisition firm under an anonymous account. When that company falls in the traps of the set in motion by the traitor, the latter, will acquire the declining company on the cheap. Will then sell for a large profit margin. There's alot of enemies when you run a business. They could be working for your own organisation.

Shorting is not very useful for hedging purposes. As you described in the video, shorts can be dangerous. There are much better ways to hedge a position. Instead, I would say shorting is useful for creating certain types of bets which are not otherwise possible. For example, as described in the video, you can, within a single industry, buy one company that you think is higher quality and short the other which in effect is a bet that regardless of the future of the industry, the company you bought will do better than the other company.

of course it should.

I love the way the narrator says markeT.

everybody gangsta until a bunch of regular people make profit

Everyone seems to agree that nothing is wrong with the concept of shorting a stock. The problem is when they are able to do things to manipulate the stock down. Pushing a stock down is a lot more morally deplorable than pumping one up. Not that that's a good thing either.

There is absolutely nothing wrong with short selling, no more or less than buying! Why is it okay to buy a stock expecting to profit, but not okay to sell one for that same purpose?

Explain something to me. I have been fascinated about the short game ever since GameStop, AMC, etc. You can never lose your money if the stock declines, "But you can lose unlimited amounts of money if the stock increases". HOW? Is there a time period when your borrowed stocks are due back the owner? Can't someone shorting a stock just hold those borrowed stocks until it comes back down? I have never seen that part explained.

How can you sell something you don't own? And the liquidity in the market is based on the shares issued, your bet should not create fake shares that will be sold. This is how the market goes down, and the retail investors and WSB will be blamed for it.

The biggest problem in the market is the FED and the government with the cheap money inflating the stockmarket. Fun fact: fundamentals doesn't matter anymore and if your company goes bankrupt the government will bail you out so no reason at all to manage risk or waste your time trying to run a profitable company.

Don't put in money you cant afford to get liquidated.

The issue isnt about whether short selling is legal because no one is arguing about that... the problem is whether or not naked short selling is legal? I find this video quite telling how it completely negated to delve into that aspect of short selling🤬

Ban short selling. It adds no value.

Nice video.

Yes it should be. And it is. And that's why anyone who shorted gamestop shouldnt have gambled more than they were willing to lose. What should be illegal is fractional reserve banking.

Short selling today is of no useful purpose for anything other than stealing value from unsuspecting investors. Whatever a hedge fund manager thinks about a stock his opinion is his for buying and selling his own stock.

I have about 5% of my portfolio in Uranium stocks, Any advice on any other stocks that I can grow my $300k capital to a million dollars?

GME just went up over 100% in one day.

You know... Like a casino!

My question is this. If the comments and chatter online is unreliable, then what warrents the chatter of these hedges to be trust worthy? Isn't their exec room private talks and then actions of buying and shorting a stock market manipulation as well? So why do these experts call the comments online market manipulation and these exec room talks a normal part of the market. Wolves chatting with Wolves won't suddenly make them saints.

Short selling is not an issue...named shorts is the issue...is like issuing 100 car titles, selling them, but there is only one car to sell. That is stealing from the other 99 purchasers.

If you don't like the stock just liquidate your OWN shares or simply don't buy it. Intentionally driving the price down is manipulation, worse with shares you don't own.

Yes, but the 3 day trade rule needs to go. It hurts the poor, doesn’t help them. They get stuck in a trade, and if something like today happened after open, they’re done.

This comment section is so dumb. Short selling is and should always be legal. Just cause you got burned on some meme stocks doesn't mean it should be illegal. Its to keep the market in check. God damn so many people doing things they don't understand. Naked short selling is illegal and should remain illegal.

Short selling is not the issue, the issue is not considering the risk involved in a particular trade....such as "naked" trades

The issue is SEC>Yelen >Citade>Melvin>Robinhood User Data>Robinhood. So is it legal for Robinhood Traders Data go towards Melvin so they can secure a advantage position agaisnt RH traders?

So this person says that if we start limiting short selling execution, we start limiting liquidity in the market...is that taking an assumption that people who own stock won't ever sell their stock? To me, the whole "short selling" thing is really a way to vote that forces a ticker to drop in price, and if there are enough down votes, the stock drops...so what does that do to people who are invested in IRA's that have stock in their portfolio? You may think "well, the person that has stock in their portfolio has just as much right to short against a ticker as anyone else", but that is absolutely not correct...you cannot take a short sell position on a stock in an IRA: folks that have IRA's that they put money into at their work, and are given an option to put their money in mutual fund, which would be under the umbrella of their IRA, and all those stocks that are within that fund are getting the $$$ shorted out of them every single day...if say TSLA is one of the stocks in the fund, and their is enough folks that short TSLA vs those that are taking long positions in TSLA, then that ticker is going to drop...and concequently the balance in those people's IRA's will drop...where is that money going that was in that IRA? It is going right into the short seller's pocket. The excuse is given that you cannot short sell within an IRA because it has unlimited loss potential...but the truth is there is not unlimited money to wage against a stock ticker in order for it to shoot up without running out of buy money...even though in a system where going below zero is not allowed, how high a stock ticker can go up is dependent on the ratio of money put in any given ticker at any given time...the truth is your account can drop thousands of dollars by only being able to trade long and restricted from being able to short in bear market situations...and that is why there are people who day trade out of a regular account won't short a stock, not because that they can't, but because they won't because they see it as stealing, because they know that folks that don't have a clue on stock market trading, people who work the "day to day", are taught to put their long term savings in an IRA investing in some mutual fund, and they know that those mutual funds are made up of a bunch of stocks from various companies, and when they vote in short sale fashion for a stock to drop, they are joining in with those who are doing the same, and when there are enough down votes, the ticker drops, and the money comes right out of those long term savings IRA accounts and right into theirs. If there are enough of them, they'll short a ticker down to next to nothing, to the extent of ruining businesses...their is no "OK, you have to have a legit reason to vote against a company in short sale fashion", all you have to do is put your money down and vote for the ticker to drop, and if there are enough votes, regardless if share holders are in full support the company, and the company has great earnings, it doesn't matter...as an example, say the company is hitting all their numbers, and people that want a rival company to get on top, if they have the bankroll, they can short the crap out of the good company and there is no "hey, you can't short them, they are profitable and are hitting all their goals" rules in place that would protect a company from a short sale attack...in fact, they might get shorted BECAUSE they are doing great, and is in the thousand dollar per share range, so the short sellers can come along, as an example, and say "Hey, let's hit TSLA today...we'll make that ticker drop $60 per share before they even know what happened...."...how much did TSLA drop today? Just looked: TSLA dropped from pre market open from around $1022 per share all the way down to $962 per share...say a person (not me, I don't have any TSLA shares, but I'm making a point for those who do): if a person has 1000 shares of TSLA and held those shares from premarket open to post market close, they lost $60,000 out of their account today, and my guess is a lot of that $$ went right into a bunch short seller's pockets...I wouldn't be typing this if folks could take short positions in their IRA accounts, because then I would consider it at least a more even playing field. Just my opinion.

The issue is en-masse short selling. When Gamestop is shorted 140% that means the short selling itself is affecting the company. Gamestop's stock was falling because everyone was selling and noone was buying. Nothing they did and the company is being driven into the ground.

Borrowing has consequences. It's that simple.

I don't know about international markets but in India there is upper level and lowel level for a stock it neither allows a stocks go above the upper level nor below the lower level, in a single day