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Rerun: Ep17 "Can the Free Market Discourage Fraud?" with Marc Cohodes

All Else Equal: Making Better Decisions

CHAPTER

The Mechanics of Short Selling

This chapter examines short selling in the stock market through a relatable furniture borrowing analogy, illustrating how market forces can regulate themselves. The discussion highlights the dynamics of supply and demand, the risks and rewards of short selling, and its crucial role in identifying corporate fraud. The speakers argue that banning short-selling may undermine incentives for thorough research and oversight in the financial system.

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