• tal@olio.cafe
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    16 days ago

    If you’re confident that a given company is overvalued by existing investors, you can sell it short, make money off that assessment.

    That being said, if you’re wrong, you can lose money doing the same.

    • CheeseNoodle@lemmy.world
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      16 days ago

      The problem with that is market value is decided by some arcane process that sane people can’t comprehend, by which I mean it goes up not if the company grows or makes new/better things but if people with a vested interest believe they can sell it later for a return, similary a materially successful business can go down in flames because a hedgefund decided to bet against it and then make it pay for its own buyout forcing a bankruptcy.