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> Companies that are dependent on financing might not get financing if loud short sellers are able to change the narrative How would this scenario play out for
by skookum 6y ago
> Companies that are dependent on financing might not get financing if loud short sellers are able to change the narrative
How would this scenario play out for a non-fraud and non-zombie business? If a publicly-traded company is in such a precarious state that they need the large cash infusion of either debt or a secondary offering to remain in business, the conclusion is that the business is non-viable. Either they IPO'ed prematurely or the expected growth isn't materializing. The short-sellers are performing the broader market a service in this case.