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I'd also like a ban on shorting. Noone should benefit from sabotaging a company. It's way too easy to drive the price of a stock down...the slightest rumor sen
by vaksel 15y ago
I'd also like a ban on shorting.
Noone should benefit from sabotaging a company. It's way too easy to drive the price of a stock down...the slightest rumor sends them into free fall.
Granted it wouldn't solve much. Wall Street could just as well drive the price of a stock down with a false rumor, then buy up the stock at a discount before it rebounded.
But at the very least, they wouldn't make twice as much on each transaction.
- T_S_ 15y agoActually I disagree. Shorts one of the few cures for bubbles that we have and they are weakened greatly by institutional rules that favor promotion over rationality. But, and this is a big one, we would have to reveal trading positions daily to banish all speculation.
- prostoalex 15y agoLarge short ratio is the first sign something is amiss. In an environment with imperfect information, someone knows more than the news on the company press releases page.
- MrMan 15y agostrongly disagree
- damoncali 15y agoI think you're equating short selling with fraudulent market manipulation. Short selling has no soul - flipping the buy-then-sell to sell-then-buy ( that is, shorting ) merely allows the pessimists to place their bets along side the optimists, and the markets are better off for it. A great read on the subject: http://leedsonfinance.com/2009/06/13/the-sec-is-at-it-again-populism-runs-amok/ http://leedsonfinance.com/2009/06/13/the-sec-is-at-it-again-...