shorters30 Jan 2021 19:59
As I understand it they borrow someone else,s shares from a broker who is willing to participate in such a practice at the then prevailing price in the hope that they can return the shares to that broker at a much lower price in the future ( less fees , margins etc.) and pocket the difference.
So effectively they wish that the SP is destroyed and the company goes bust or is worth much less, resulting in losses by regular investors, job losses and unpaid suppliers, contractors etc. In effect the polar opposite of why firms go public to attract funds to grow their business.
Now I am not naive enough to realise that there aren't some dodgy lifestyle type cos. out there that will and should fail because of their own actions and results.
Unfortunately what some shorters do is spread often false information in an attempt to spook genuine investors into selling , reducing the SP in order to line their own pockets.
To pretend they are Sheriffs rooting out scams etc. is rubbish, they descend like vultures and hyenas trying to overwhelm and destroy any target they fancy.
What a way to live!
Amen