The Role of Short-Selling in Markets

In the chapter “Short Selling” in the 1935 edition of “The Securities Markets”, Wright G. Hoffman wrote:

One of the most essential functions of organized markets is to reflect the composite opinion of all competent interests. To admit only opinion looking to higher prices is to provide a one-sided market. To bring together an open expression of both long and short opinion is to provide a two-sided market and…a better reflection of prevailing conditions will be shown in the price structure (pp. 398-399).