Robinhood CEO Criticizes ‘Runaway Chain Reaction’ of Short Sales
- Argument to made that same share should be shorted once
- Former SEC Chair Clayton says more disclosure on shorts needed
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Robinhood Markets Chief Executive Officer Vlad Tenev said short selling the same shares multiple times is creating a chaotic dynamic for markets and investors.
When a stock is being borrowed over and over it “creates some sort of runaway chain reaction,” Tenev said at the New York Times DealBook DC Policy Project virtual conference Tuesday. “How many times should we let the same share be shorted? I think there’s an argument that the answer should be one.”