3 ms·

If one is a libertarian, wouldn't the assumption be that the market will handle this scenario? When someone takes the other end of your short, it's up to them t

If one is a libertarian, wouldn't the assumption be that the market will handle this scenario? When someone takes the other end of your short, it's up to them to do appropriate due diligence on the counterparty risk. Maybe they want to demand you own the underlying security; maybe they don't want to demand it. As long as it's free individuals entering into contracts, I don't see the case for banning them from a libertarian perspective specifically.

frabcus 13y ago
Somebody would own the stock market, and they could choose not to allow this.
- _delirium 13y ago
  Isn't that the case even today? Both the NYSE and Nasdaq are owned by private companies.
  - sumedh 13y ago
    > Both the NYSE and Nasdaq are owned by private companies. NYSE is owned by Intercontinentalexchange Group which is publicly listed.