Question about shorts..

Quote from psychonin:

A company's ability to raise capital is partially linked to its share price.


AIG borrowed tons of money when its stock price was high. It tried to borrow tons more money before its stock price collapsed. It was unable to, and its stock price collapsed.
 
Is it actually fair to just instantly ban Short Selling temp or no? I mean we are in a free economy? dont they have the right to Short?
The market/economy must be in a bad situation, otherwise the market should be able to go back up on its up course n punish the Shortsellers w/t help?
 
Quote from capitaliz:

Is it actually fair to just instantly ban Short Selling temp or no? I mean we are in a free economy? dont they have the right to Short?
The market/economy must be in a bad situation, otherwise the market should be able to go back up on its up course n punish the Shortsellers w/t help?

Shorters are one of the scapegoats for the financial troubles. While naked short selling is a problem, legitimate shorting in the long term is not damaging. But I'm telling you I think the lack of shorters could actually cause even greater panic selling from the longs. Shorts can panic buy while covering (buy at any price), longs generally get overexhuberant, but they tend to panic sell (at any price).
 
Quote from capitaliz:

Is it actually fair to just instantly ban Short Selling temp or no? I mean we are in a free economy? dont they have the right to Short?
The market/economy must be in a bad situation, otherwise the market should be able to go back up on its up course n punish the Shortsellers w/t help?

We are not in a free economy, no.

The liberal socialist cunts have taken over.
 
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