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The biggest issue that regulators all over the world get confused about is, they think somebody has to sell for the market to go down, so if you ban selling, ma
by vasilipupkin 11y ago
The biggest issue that regulators all over the world get confused about is, they think somebody has to sell for the market to go down, so if you ban selling, market will not go down as much.
But in fact, if you ban selling, market becomes less liquid, and so, buyers have to demand compensation for incurring additional liquidity risk. therefore, they will lower their bids and market will drop even more !