Short Selling: The Bears of the Market

Daniele D’Alvia ()
Additional contact information
Daniele D’Alvia: Queen Mary University of London

Chapter Chapter 6 in The Speculator of Financial Markets, 2023, pp 237-278 from Palgrave Macmillan

Abstract: Abstract Chapter 6 is providing a historical account of short sellers from the Great Bear of Wall Street until Michael J. Burry, George Soros, and the GameStop saga. Short selling often gets a bad reputation: because it is a type of trade that bets against the success of a firm. In essence, short selling allows investors to borrow stock from a broker to sell into the market with the hope of buying the stock back at a cheaper price, thus profiting on the difference between the sell and buy prices. Because of this practice, short selling is sometimes seen as a controversial tactic. Furthermore, speculative short selling attacks are concerning as they can put downward pressure on the entire stock market. However, the chapter shows that short sellers play a critical role in financial markets by being ‘detectives’ of capital markets.

Keywords: Financial crises; Financial regulation; Short selling; Shares; Speculation (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-031-47901-4_6

Ordering information: This item can be ordered from
http://www.palgrave.com/9783031479014

DOI: 10.1007/978-3-031-47901-4_6

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().