> In 2007, a comprehensive study of markets around the world found that ones where short selling was legal and common were more efficient than ones where it was not. And a 2012 study concluded simply, “Stock prices are more accurate when short sellers are more active.” https://www.newyorker.com/magazine/2015/03/23/in-praise-of-s... Short selling is a _good thing_. Blaming the short sellers is the practices of compani…
Agreed. In many cases, short sellers do a better job of identifying, researching, and flagging illegal behavior than government agencies charged with enforcing the rules.
The key thing is, motivation. Both long and short investors have motivations to cull the herd.