- Nov 29, 2014
There's a lower transaction cost to "trading" cash but it's still only valuable because someone backing it says it is. Your stock is legitimate ownership of a company and is worth what it is because of the perceived value of the company. Point being, I think you're being too generous with you notion of cash being a real thing unlike stocks.I don't know if that's 100% analogous only because DvDs and cash are somewhat more material, actionable, and accessible items concerning their ability to be traded. But I don't decry stock holders who lend shares. Shorting is risk and I see new reason to absolve risk because a previously unthought of method increased it. Or restored it.