Does Shorting a Stock Hurt the Company? Cause Bankruptcy?



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When I was a beginner to the stock market and investing, I was never quite sure how shorting a stock worked, and in particular, does shorting a stock hurt the company itself? Could shorting a stock ultimately cause a company to go bankrupt? If so, then people that make money from going short are seemingly pretty shady! The more I learned about shorting stocks though, the more I realized there is much more that goes into the general idea and practice. In this video, I want to share with you what I have learned and hopefully give you a better understanding of the overall scope of the stock shorting strategy. It’s pretty common place these days to see “the shorts” blamed for anything and everything when a stock price goes down, but are “the shorts” truly the cause of the falling price? When you look at a stock chart and see a price drifting lower and lower week after week, is this because of traders who are shorting the stock? Do these traders actively want to see the company fail? In order to best explain all of these concepts to you, I have a business proposal for you. After I give my business proposal, you need to tell me whether you want to buy stock in my company, or short it. Let’s do some learning!

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