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View Diary: Ban on Naked Short Selling- Good or Bad? (15 comments)

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  •  yes (1+ / 0-)
    Recommended by:
    wgard

    Short selling in itself is fine, naked shorting isn't.  

    •  Give me an example of a problem caused (0+ / 0-)

      by naked shorting.

      "He that troubleth his own house shall inherit the wind."

      by lordcopper on Thu May 20, 2010 at 06:05:35 AM PDT

      [ Parent ]

      •  I'm not necessarily pro or con naked ss (0+ / 0-)

        I think my diary is getting misconstrued.  The whole point of it was to point out that the idea that the German market or the Euro market will collapse because of the ban is insane when you look at the actual debt ratios and balances of the governments.  

        All of this being said Naked Short Selling can artificially lower a stocks share price and if the finances of the firm are not in good order it can cause massive problems.  

        For a long example on what it can do check this out.
        http://www.overstock.com/...

        •  The German ban is selective, applying only (0+ / 0-)

          to govt bonds and financial service companies (banks).  It makes you wonder what they're afraid of.

          While naked shorting can artificially lower price temporarily, over the longer term information (quarterly results, 10Q reports) would confirm or refute the pricing.

          "He that troubleth his own house shall inherit the wind."

          by lordcopper on Thu May 20, 2010 at 08:22:38 AM PDT

          [ Parent ]

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