In the equity lending market, big investors like mutual funds receive fees from short sellers when they lend their shares to them
Billionaire investor Warren Buffett famously said, “In the short run, the stock market is a voting machine, but in the long run, it’s a weighing machine.” Put differently, over the course of days, even weeks, the market measures popularity, but given enough time, it accurately assesses any stock’s value.
[This article has been reproduced with permission from research from the UNC Kenan-Flagler Business School: http://www.kenan-flagler.unc.edu/]