The Business Ethics of Short Selling and Naked Short Selling
James J. Angel, Douglas M. McCabe
Journal of Business Ethics, 30 September 2008
The controversy over short selling has continued unabated from the introduction of modern equity trading in Amsterdam in 1610 to the present day. Nevertheless, the business ethics literature has not really addressed short selling. Short sellers not only profit from the misery of others, they also create it through their selling activities. However, they also provide a socially useful service by making prices better reflect true values, protecting other investors from purchasing overpriced securities.
