Is the Era of Short-Selling Stocks Coming to an End?

Is the Era of Short-Selling Stocks Coming to an End?


Reddit forums and short-selling probably were not in most people’s vocabulary before this year.

The meteoric rise and fall of the GameStop (GME) stock price — fueled by institutional short-sellers and rabid Reddit posters on the r/wallstreetbets thread — shined a spotlight on the practice of shorting stocks and how a few individuals could amass an army to flip the table on “Wall Street insiders” and potentially pocket incredible returns.

A lot of ink has been spilled on GameStop’s recent roller-coaster ride. For the past five years, GME gradually fell in value from the high 20s to a low of $2.57 last April. Most analysts had written off the stock as it seemed clear that brick-and-mortar stores selling physical copies of video games in an era of downloads and quarantine was not a winning strategy. The low value of the stock seemed accurately priced, and so when the stock started to

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