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shropshire

Should Short Selling be banned?

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Nope. Just another form of speculation. It's no less a thing than buying stock in hoping it increases in value.
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"The trouble with quotes on the internet is that you can never know if they are genuine" - Abraham Lincoln

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No, it shouldn't be banned and it's not a crappy way to make a buck. Short selling helps set accurate prices and it helps pin point problem companies. A lot of people are trying to pin the blame on short-sellers, but IMO thats a bunch of BS. The financial markets work best when there is a free flow of information from buyers to sellers. As an investor wouldn't you like to hear both reasons to buy and sell securities. If you owned XYZ stock and noticed that within the last few days 20% of it's shares have been shorted wouldn't you like to know.

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It is a crappy way to make money when you maliciously force down the value of stock via romour and lies (as appears to have been happening recently) and thus undermining companies.

These "people" are not making anything tangible but living off misery - sounds like scum to me.

(.)Y(.)
Chivalry is not dead; it only sleeps for want of work to do. - Jerome K Jerome

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Most short sellers and margin buyers tend to be reactive. "Pump and Dump" and "False Rumor" are proactive. If you want to separate the good from the bad, figure out where the trader resides.

edited to add:

You can't illegalize something that is global. You can short-sell GM in China and Italy. Same with the Dollar
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"The trouble with quotes on the internet is that you can never know if they are genuine" - Abraham Lincoln

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Like I say, I'm no expert. I'm just reacting to what I heard on the news and is just sounds like a poo way to make a living.

I make stuff and get stuff made, I don't rely on anyone else loosing their shirt to make a crust.

(.)Y(.)
Chivalry is not dead; it only sleeps for want of work to do. - Jerome K Jerome

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You only lose if you sell, or your company goes into the "pink sheets". Problem with the ban at wall street is it may be the ban itself that is the reason behind the increases of the stock prices. A lot of those stocks may very well be overvalued if the ban is pulled at the wrong time.
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"The trouble with quotes on the internet is that you can never know if they are genuine" - Abraham Lincoln

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My point is that if you really want to be something usefull in the City - then you should be a lamppost:P not a trader:S



It's all part of the game. Like betting on the Don't Come line. It's not great karma, but if you're the only one at the table making money then you're winning.

Your statements implicates dishonestly. Shorting stocks is not, in any way, dishonest. Spreading rumors, telling lies, and manipulating the market is entirely different. Shorting stocks had nothing to do with Lehman Brothers and AIG imploding.

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You buy low and sell high. Sometimes you sell high first.

But I think the rule is that you can't sell short unless the stock is in an uptick.



Depends on the company, stock, and stipulations. Upstick or even is typically standard for a short. It just depends on who's buying and who's lending. Not sure who would lend stocks for a short if the company is falling. Bad plan on their part.

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While we're at it, let's ban options. You don't want to have someone issue a put at today's price and a call on the same ticker below the put. That'd be like a short.

What'll we do about people going long on negatively correlated securities?

...

Hmm...Henceforth all securities shall be positively correlated. You know, to prevent some people from making money while others are losing. And besides, not everything will lose value at once, that's never happened before, right?
My advice is to do what your parents did; get a job, sir. The bums will always lose. Do you hear me, Lebowski?

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While we're at it, let's ban options. You don't want to have someone issue a put at today's price and a call on the same ticker below the put. That'd be like a short.

What'll we do about people going long on negatively correlated securities?

...

Hmm...Henceforth all securities shall be positively correlated. You know, to prevent some people from making money while others are losing. And besides, not everything will lose value at once, that's never happened before, right?



Yeah. Then we could all make everything equal and hold hands. That way the successful could share with the unsuccessful. People would be happy on all levels and be motivated to work for the greater good. It'll be perfect. We'll work out just like the Soviet Union.

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I say out;aw it, it only motivates day trading and that is what makes vital day trading. Speculators suck, that's behind a lot of the gas price hikes.



You should stretch before a leap like that.

Speculators have a lot to do with gas prices. True.

Shorting should be outlawed. Totally different argument.

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I say out;aw it, it only motivates day trading and that is what makes vital day trading. Speculators suck, that's behind a lot of the gas price hikes.



You should stretch before a leap like that.

Speculators have a lot to do with gas prices. True.

Shorting should be outlawed. Totally different argument.




Simply discussing the various ways the market fucks us.... don;t think it's a stretch.

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Prior to yesterday, those pre-approved by the ASX could short-sell here in oz.
But they've banned all short-selling now.
xj

"I wouldn't recommend picking a fight with the earth...but then I wouldn't recommend picking a fight with a car either, and that's having tried both."

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These people aren't living off the misery of others. The stock market is a highly sophisticated form of gambling IMHO. Well in all honesty all the markets are from commodities to bond markets. You're either betting that XYZ is gonna go up or gonna come down. George Soros at one point made over a billion betting against the British pound a few years later he lost 2 Billion betting against the Russian Ruble. If you're gonna ban short sellers might as well close all the commodities and options markets. Stop blaming short sellers for this whole mess. The real blame is with the board of directors and upper level management who actually knew what was going on with the balance sheets and the books of these investment banks.

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Simply discussing the various ways the market fucks us.... don;t think it's a stretch.



Speculating also drives prices down. Matter of fact, speculation is what prices everything involving commerce.
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"The trouble with quotes on the internet is that you can never know if they are genuine" - Abraham Lincoln

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The SEC did away with the uptick rule a few years ago as I understand it. If it was brought back then that might help. Cramer was going off about the uptick rule on his show yesterday and how stupid the banning of financial short selling was.
Yesterday is history
And tomorrow is a mystery

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