Short sellers are not aligned with the interests of the company or of its shareholders. They borrow your stock from your broker, and need to return it at a later date. By selling first and buying later, short sellers benefit from stock prices going down instead of up. We are all working toward increased share price, while short sellers are looking for a decrease. If there is a lot of short selling, the supply of our shares may exceed demand for our shares, causing the stock price to go down.
Short sellers bet on that.
In effect, short sellers could make money by selling enough stock short to artificially increase the volume of selling, which then drives down the market price. Short Sellers Borrow The Stock From You Short sellers borrow the stock from shareholders, whether or not the shareholders are aware of it. When shares are held in street name, the broker is the legal owner of record and can loan your stock to anyone without your permission. Many companies currently in the marketplace are experiencing a high volume of short selling. Unfortunately, we are no exception.