Originally Posted by Sami

My appologies, thats what I meant.
short selling is to borrow a stock you don't own.. naked short selling is not even borrowing the stock.. which is what needs to be banned.

Short selling is required for hedging purposes, liquidity.

How are you suppose to hedge against a position now?

Liquidity will drop 10 folds with no shorting.


If they actually do go through with this.. its going to start a massive equities bubble.. and when / if they do reinstate the short selling back into the markets its going to cause a mother of all crashes as equities will be brought back to fair value at a fast pace.. causing panic and further mass selling!


its been part of the markets for decades!

20% correction in the markets and the world is loosing it.

Unbelievable!


This will officially eliminate merger arbitrage... pairs... inverse etfs... banks that were hedging positions to protect correlating assets /equities will have to unwind those hedges now.

Christopher cox has lost it. Thats all I know!