Comments by "Samson Soturian" (@samsonsoturian6013) on "How Short Selling Works" video.

  1. In the days where you found a person to let you borrow a physical share, yes that was so. But your broker will see that and hold the money back along with extra as collateral. Most brokers have algorithms that adjust how much extra you can have based on the amount of risk you got.
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  2. You're thinking of borrowing to invest, and in the roaring 20s there weren't really any limits to that.
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  3. It assists in price discovery and allows individuals to hedge. Also, it's how vigilantes get paid, as there are hedge funds that specialize in exposing corporate frauds.
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