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To: Rarebird who wrote (34024)6/25/1998 5:22:00 PM
From: Helios  Read Replies (1) | Respond to of 50808
 
Rarebird,

I would add to that:

Short sellers often perform the service of uncovering fraud, (by fraud I don't necessarily mean in the legal sense) particularly in thinly traded over hyped issues and preventing those who would commit fraud from fully profiting from their attempts. Of course short sellers often commit fraud by spreading false rumors about a company to drive the price down.

Short sellers can provide a soft landing for a stock on the way down when they eventually cover.

Best of all short sellers can provide a pop to a stock when they get squeezed out of their position.