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RE: A Dive Into Short Sellers

Actually short sellers are using derivatives. People can short effectively by using options but a true short seller is selling the stock then looking at buying it back at a later date. It is nothing more than a loan.

And shorts are necessary for price discovery. Someone putting on a short might not betting on the company to fail. Instead, it is a bet the price of the stock will go down.

Stock prices go up and down all the time.