In his latest interview with Really American, Jim Chanos says short sellers are the financial detectives of financial markets. Here’s an excerpt from the interview:
There’s one more important point as it relates to short selling in the financial markets. I do think is really important and this is the part that people miss when they talk about short selling and the meme stocks or the shot and freud of short sellers benefiting from others misery and so on.
Short selling is crucial for not only price discovery but more importantly ferreting out fraud. Short sellers have an economic incentive to ferret out financial fraud whereby financial regulators are usually way behind the curve.
I’ve joked that short sellers are financial detectives in the markets whereas the regulators and law enforcement are the financial archaeologists.
You can watch the entire discussion here:
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