SEC rule on 'naked' short-selling now permanent

Quote from Angrycat:

It'll make it less rigid and more volatile during disruptions. It'll also make U.S. exchanges less competitive.
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Can you prove it using the past years trading? After all, this rule has been in place for a year now. Tell us how the US Capital markets lost competitiveness over this past year because of this rule.

I just love when people inject opinion as somehow being factual when they have nothing to support their claims.
 
companies will have to worry less on their stock prices falling as much. companies rely on their listings to raise capital, (issue more shares for money) and if short selling drives the prices lower, it might bankrupt the company in tough times as they won't be ableto raise as much capital if their share price is too low.
 
Naked shorting turns equities into futures. Low cap stocks are easy pickings for Wallstreet to raid and crash.

This is a good ruling. Naked shorting is bs. Locate or no short.
 
Quote from melanie911:

what about brokers? they will charge investors because of new requirements, (borrowing costs etc) let's see...
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Short sellers are not investors. They are speculators. That's why they never qualify for long term cap gains.

I am long an OTC stock for the past few years that was on REG SHO list alot. Now it's up 500%, in the past several months. Some of the rise is due to good news specific to the stock, but some must be due to the ban on NSS>

Folks who say banning naked shorts has no effect are either talking without any facts, or engage in prevarication.
 
Quote from melanie911:

what about brokers? they will charge investors because of new requirements, (borrowing costs etc) let's see...
More...

NOTHING changed. Borrowing costs are charged to investors even when a trade fails.
 
Hey guys,

I attached a pdf with a proposal that was made to the SEC for a real-time US-wide shorting pool that would make naked shorts impossible while still allowing regular shorts to trade, and the regulators to actually control this...

Quiet an interesting read... even if the SEC decides to ignore it :)
 

Attachments

Quote from countryBoy:

Short sellers are not investors. They are speculators. That's why they never qualify for long term cap gains.

I am long an OTC stock for the past few years that was on REG SHO list alot. Now it's up 500%, in the past several months. Some of the rise is due to good news specific to the stock, but some must be due to the ban on NSS>

Folks who say banning naked shorts has no effect are either talking without any facts, or engage in prevarication.
More...

copy&paste from sec website

Short selling often can play an important role in the market for a variety of reasons, including contributing to efficient price discovery, mitigating market bubbles, increasing market liquidity, promoting capital formation, facilitating hedging and other risk management activities, and importantly, limiting upward market manipulations.

but imo naked can be a tool to manipulate the marke
 
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