When a company gets listed for a boycott at Karmabanque, the object is to turn it into what Stacy calls "Hedge Fund bait." Hedge Funds will "sell short" a stock if they believe its share price may be heading south.
... If a hedge fund has reliable information that a boycott is going to hurt a company's sales, and knows that the stock value of the company is vulnerable to retail loss, it will take that bet...
If enough funds are betting that a stock is going down in value, shareholders and investment analysts begin to bail out of their long positions on the stock.
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