FYI: The importance of the role played by short-sellers has received increasing attention from academics in recent years. Research has demonstrated that short-sellers, as a group, are key market intermediaries who improve the informational efficiency of prices, increase market liquidity, and, by doing so, help lower country-level costs of capital.
In addition, temporary short-selling bans have been found to impede pricing efficiency. Without short-sellers, equity prices can become overvalued, because only optimists are expressing their opinions on valuations.
Regards,
Ted
http://www.etf.com/sections/index-investor-corner/swedroe-risks-short-selling?nopaging=1
