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JustABozoOnThisBus

(23,340 posts)

6. I think the only way a hedge investor can sell short is ...

Reply to Sanity Claws (Reply #3)

Fri Jan 29, 2021, 05:13 PM

Jan 2021

... if some other hedge investor is willing to buy that deal.

Both are managing risk.

Sometimes market forces will raise a stock price far beyond what makes sense if you look at a price/earnings ratio. Tesla, for example. It makes sense to buy if you think it will keep going up. But, its price/earnings is up around 140. The other automotive are around 15 or 20. Should buying Tesla be allowed?

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16 replies

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Highlight:

Why GameStop's stock surge is shaking Wall Street [View all] Yo_Mama_Been_Loggin Jan 2021 OP

Like Holland's Tulip Mania modrepub Jan 2021 #1

Same here. Mike 03 Jan 2021 #2

One hedge fund has already gone under Sanity Claws Jan 2021 #3

This and F hedge funds that face no regulation RANDYWILDMAN Jan 2021 #4

Shorting on such a huge scale, as the hedge funds were doing Mariana Jan 2021 #7

Hedge fund should not be allowed to exist at all in a stock market. BComplex Jan 2021 #9

It's trading calguy Jan 2021 #5

If I think a horse will win, why not make money on the race? Sanity Claws Jan 2021 #8

The guys behind Reddit are scammers in their own right calguy Jan 2021 #10

That I agree with Sanity Claws Jan 2021 #11

Short selling creates liquidity calguy Jan 2021 #14

Artificial liquidity that is. Disaffected Jan 2021 #16

I think the only way a hedge investor can sell short is ... JustABozoOnThisBus Jan 2021 #6

Is your presumption correct? Sanity Claws Jan 2021 #12

I don't know if what I said was correct. JustABozoOnThisBus Jan 2021 #13

The Code is Cracked: The Stock Market has been artificially buoyed over the Baitball Blogger Jan 2021 #15