Short sellers are good for markets
This article doesn&#x27;t mention this, but short selling is a fundamental piece upon which many other financial instruments are built, because it allows hedging<p>If you take away short selling, you take away many other healthy components of functioning markets. You won&#x27;t have functioning options markets for example, because market makers can&#x27;t hedge their positions<p>I&#x27;d actually like to see more short selling. Especially in small biotech companies. It is either impossible or expensive to short these shares, so no one does it. Valuations can therefore be sustainably too high -- it&#x27;s as if these stocks live in a world of lower gravity<p>Having an active short market would also enable all kinds of interesting options trading strategies, and I think smart math-minded people would have a field day