Why is it much riskier to take a short position in a stock

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Reference no: EM131276049

1. Why is it much riskier to take a short position in a stock than a long position? What does that mean for the likelihood of overvaluation versus undervaluation of a company's share price?

2. Why do executives spend so much time and effort on communicating with noise traders if intrinsic investors ultimately drive a company's share price?

Reference no: EM131276049

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