You don’t need shorting for supply and demand.. I have a stock to sell and you are willing to buy it at a certain price.. if that’s below market price then the price falls.
Hard to believe such easy concepts are so hard to get across.
Short sellers BUY stocks that have gone down.....Halting the slide of sellers at a perceived reasonable and fair price! (usually higher actually cause its hard to pick the lowest point )
PS.....I covered my short position of Wacovia (17.35) at 1.83 even though it went lower!!!....Some seller somewhere got to sell his stock at a HIGHER price then he would have gotten later.....I SAVED HIM SOME LOSSES!.... get it???