What Purpose Do Short Sellers Really Play?

Today's Twitter segment of "Where The Money Is" answers a tweet from Bloomberg News, which calls short-sellers "self-serving, nutty and often right." 

Short selling can be terrifying -- in theory, you can lose a literally infinite amount of capital. But short sellers serve a valuable function in the market, correcting for irrational exuberance and keeping stocks priced reasonably. 

In the following video, Motley Fool energy analysts Taylor Muckerman and Joel South discuss this tweet, and two of the most heavily shorted stocks in the solar sector -- SunPower and SolarCity .

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The article What Purpose Do Short Sellers Really Play? originally appeared on Fool.com.

Joel South owns shares of SunPower. Taylor Muckerman owns shares of SolarCity. The Motley Fool recommends SolarCity. The Motley Fool owns shares of SolarCity. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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