© 2021 WFAE
90.7 Charlotte 93.7 Southern Pines 90.3 Hickory 106.1 Laurinburg
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations

Short Shrift For Short Sellers

Short Seller Andrew Left and Tesla CEO Elon Musk
Short Seller Andrew Left and Tesla CEO Elon Musk

Unlike most investors, short sellers make money when the value of a company falls. And they don't have a great reputation. They're often regarded as the vultures or hyenas of the financial world, preying on weak companies, and sometimes spreading negative rumors to bring a company down.

But quite often, short sellers perform a necessary task. They have a financial incentive to expose weakness and uncover the truth about a company's status. And when they do so, honestly and transparently, the market benefits.

Music by . Find us: Twitter / Facebook .

Subscribe to our show on Apple Podcasts , PocketCasts and NPR One .

Copyright 2020 NPR. To see more, visit https://www.npr.org.