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> Make shorting illegal. Short sellers profit from exposing fraud (like those that researched Enron and Wirecard). Making the only market participants with fin
by thekyle 6y ago
> Make shorting illegal.
Short sellers profit from exposing fraud (like those that researched Enron and Wirecard). Making the only market participants with financial incentive to put downward pressure on stock prices illegal seems like a bad idea.
- taurath 6y agoThey also profit from creating the perception of fraud, filing spurious lawsuits and marketing against companies they are shorting. Shorting is illegal in Australia, Germany, Italy, Spain, Portugal and a few other countries with large financial markets. The US has the most "open" policies on shorting in the world. Short selling was an extremely large contributor to the 1929 stock market crash.
- smabie 6y agoShort selling is not illegal in Germany. I also suspect you are wrong about some of the other countries as well. But regardless, you would be hard pressed to find anyone in the industry who thinks shorting is bad. The overwhelming consensus is that shorting is very good to allow