Stock Shock (2009)

Trader's Film Library #48 · Frauds and scandals. A one-sided but interesting voice in the debate over short selling.

Original title: Stock Shock: The Short Selling of the American Dream · Type: documentary · Created by: Sandra Mohr · Usefulness for traders: ★★☆☆☆

What it's about

A documentary about so-called naked short selling (without first borrowing the shares) and its effect on share prices, including satellite radio company Sirius XM in 2008–2009.

What it has to do with markets

During the crisis, naked short selling was the subject of heated debate and regulatory changes in the US. The film presents one side of that debate.

Lessons for traders

• short-selling rules change during crises
• “blame the short sellers” is a common narrative in a decline (the narrative fallacy, Atlas of biases #26)
• check the sources and the interests of the filmmakers

What to watch out for

An advocacy film built mainly on one thesis. Little known.

Discussion

The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →

Navigation

← #47 American Greed · Film Library index · #49 Billionaire Boys Club →

The description outlines the plot without revealing the ending where possible (true stories have a known outcome). Educational content, not investment advice.