Added: 2 years ago
From: khanacademy
Views: 35,187
Sort by time | Sort by thread (beta)

Link to this comment:

Share to:
see all

All Comments (39)

Sign In or Sign Up now to post a comment!
  • I am very happy to see the vidoe A discussion of the virtues and/or vices of short selling after you give this

  • I Love The Video A discussion of the virtues and/or vices of short selling. It Can Increase My Knowledge

  • Steady I Really Like This Video A discussion of the virtues and/or vices of short selling

  • Any buying and selling no matter whether it is day traders or short sellers DO manipulate the stock, since their behavoir does affect the stock price. If this behaviour were taxed or curtailed it would slow it down and make the price of the damn stock more stable and more reflective of the real value of the company.Stock value then has more to do with what the traders do ratiher than what the company does, the quality of its products and the value of the service it provides to society.

  • Can someone please explain to me how this guy is an expert in Biology, Chemistry, Mathematics, Finance, Economics and Accounting?

  • you know you're getting a thorough look through when the categories are positive and scrutinitive. rather than some textbook giving you some unreal positive and negative categories.

  • this is the shit. it's taken a while to find a good learning source about the important things to learn about and who would have known it's khan academy who ive been helping with my maths degree for ages now.

  • Thank you so much for sharing this video!

  • Thanks for the tip about CNBC Sal even though you work for them now. Haha

  • there is a penalty for short sellers who spread false rumors, it's called insider trading and it's illegal(in some cases).

  • Isn't it true that Brokerages short the longs of their clients? Brokerages make money by "advising" long positions, then shorting clients stocks. As you say, the gov, rating agencies, regulators, brokerages & overall system is manipulated.

    Thanks for vid.

  • 12:46 e.g. Peter Schiff...

  • I agree with thephropting1 capitalism is about self and not society I remember in 60 mintues how the short sellers who won on the mortage collapse were villified even though they didn't do anything wrong people were mad because they did well while everyone else sank

  • But what about the competition?

    Imagine a young upstarting company with an innovating idea or technology and holders of a patent that could radically change the way we live.

    Because that new company starts out small, can't a large competing corporation just destroy their market value using short selling in a bad way, because they have 1000 times more financial power. They will lose money initially, but eventually the competing company bankrupts and they gain the patent. Isn't that a problem?

  • great vid, i was wondering why the NYSE created the uptick rule for short selling?

  • great work

  • khan your a genius

  • If stock brokers short sold the Iraq War(defense contractors, bank loans to defense contractors and other profiteers of war) they would greatly increase their respect for their profession and media attention.

  • @PostBush lol that is retarded. they would NOT because they would have lost money. idtard.

  • Its difficult to start talking about morals when you are talking about pure capitalism. Because in true capitalism you are talking about an individual who has gathered their capital and is free to invest their capital freely and legally.

  • All these comments and not one poster says anything about margin or margin requirements. If u don't understand 'margin' and how it works then you have NO business being involved with short selling. You must be well versed with all the rules of this game or basically your toast... I am no expert but. shortiing(as its also known) is generally not for novice or small time traders! Learn the rules and see for yourself then you'll understand! Thx.

  • what about the SEC would you lump them in with the government/positive side?

  • forget short selling.try shirt selling.

  • @dekekyo LAWLS

  • For clarity, maybe it would be a good id to make a distinction between liquid and illiquid assets, and large hedge funds versus small investors.

    I'm assuming you're not buying the story of big investors driving down the price of illiquid assets.

  • lol that's what you'd like us to believe. ive made tons shorting psshhh

  • Is this the cause of irrational exuberance ?

  • Thanks Sal. So how do you feel about AIG?

  • essentially us "normal" investors are at the mercy of the short sellers/manipulators because we may react to false indicators - I guess that's why they are rich and the people trying to do normal investing in the last several months are poor. Hmmm, just another reason we are getting screwed.

  • No, because you could short a stock too.

    If you know that a stock is trending downward or could potentially suffer huge losses for some reason, then you could and should short the stock. Yes, you Mr. Normal investor can be a short seller too.

    If not you can always buy put options (insurance) on your positions for protection.

  • Nicely argued

    What are your views on naked short sellers are they still helping the market with price discovery or not helping by distorting the supply demand curve.

  • Shorting is often used as a hedge. Sometimes you hedge right before a big news announcement or earnings report.

    If there was no shorting then NO one would be making any money right now lol.

    Shorts can't take down a viable entity they can just make the take down swifter. If a company is bleeding it will attract sharks.

    So shorting is good, useful & necessary.

    More "damaging" is speculating where you are driving prices up, but it all depends on your viewpoint.

  • "If a company is bleeding it will attract sharks."

    hahaha very nice way to depict that.

  • Sal im going to go ahead and write you a prescription because youre SICK buddy!

Loading...
0 / 00Unsaved Playlist Return to active list
    1. Your queue is empty. Add videos to your queue using this button:
      or sign in to load a different list.
    Loading...Loading...Saving...
    • Clear all videos from this list
    • Learn more