Elon Musk
@elonmusk · Oct 5, 2018
There is no rational basis for a long holder to lend their stock to shorts, as it dilutes the shareholder base & gives the short a strong incentive to attack the company by whatever means possible, including regulators
Elon Musk
@elonmusk
Where this breaks down is in passive index funds, which constitute most of the market. The holders of those funds, mostly small investors & retirement funds, don’t realize that their stocks are being lent to short sellers, diminishing their true equity return.
12:54 AM · October 5, 2018 · 0 views
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