A Biotech Short Seller Responds To Critics
"Short sellers serve a vital function in our capital markets. They effect efficient price discovery despite our regulators' best efforts to impede price discovery when stocks move down. Does anyone seriously think we will see a downtick rule when stocks are up greater than 10%? Or a loosening of the rules governing stock borrow? For long-only investors who would like to see the voice of short sellers squelched, I say listen to Ayn Rand: "You can avoid reality but you cannot avoid the consequences of avoiding reality."
What if any changes to the practice of short selling would you make? Are short-selling rules too liberal or too restrictive? Please share your thoughts and ideas in the comments section below.