Why is it much more risky to take a short position in a stock than a long

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Why is it much more risky to take a short position in a stock than a long position? What does that mean for the likelihood of over- versus undervaluation of a company’s share price?

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Valuation Measuring and managing the values of companies

ISBN: ?978-0470424704

5th edition

Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel

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Question Posted: Aug 12, 2015 02:22 AM

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Why is it much more risky to take a short position in a stock than a long

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It is more risky to take a short position in an overpriced stock because of the extra costs and th...View the full answer

Valuation Measuring and managing the values of companies

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