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SEC plans measures against short-selling

Discussion in 'BBS Hangout: Debate & Discussion' started by Air Langhi, Sep 15, 2008.

  1. Air Langhi

    Air Langhi Contributing Member

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    http://biz.yahoo.com/ap/080915/sec_short_selling.html


    I don't like shorting, but this is a joke. Lehman is broke cause they were greedy like all the other big banks. I hate the rich. If anything doesn't go there way they want to blame everyone except themselves.
     
  2. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    good work sec. it has to be someone else's fault not the company's fault. :rolleyes:
     
  3. DaDakota

    DaDakota If you want to know, just ask!
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    Short selling can seriously hurt smaller companies on the OTC, and small caps market.

    I would not mind seeing some regulation on it, maybe limiting it to larger corporations.

    DD
     
  4. Invisible Fan

    Invisible Fan Contributing Member

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    After that UAL spook, I guess they have some justification. But it's a very very thin one.

    The same lobbyists who wanted no regulation are now begging for a particular one to save their bacon.
     
  5. ArtV

    ArtV Contributing Member

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    They need to remove trading futures. That drives the price up artificially on necessary items (see OIL and NG 08). The rest of us have to pay the higher price because deep pockets pushed the price up - not supply and demand issues.
     
  6. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    and your basis for this is?
     
  7. DaDakota

    DaDakota If you want to know, just ask!
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    Companies that I have worked for that raised money and then short sellers hindered our ability to raise additional funds before we had a chance to hit profitability.

    Even though we were ahead of projections.

    DD
     
  8. Sacudido

    Sacudido Contributing Member

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    Naked short selling is BS, and should have been regulated out of the market a long time ago. Better late then never? :rolleyes:
     
  9. DaDakota

    DaDakota If you want to know, just ask!
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    Exactly, if you want to sell short, cover it...FIRST !!

    DD
     
  10. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    if you beat projections then you will find buyers for the stock. anytime any company in the market has blamed short sellers it has been to cover up for their own poor performance.
     
  11. DaDakota

    DaDakota If you want to know, just ask!
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    You would think, right?

    But that is not the case sometimes......especially on the OTC and AIM markets.

    DD
     
  12. Air Langhi

    Air Langhi Contributing Member

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    They did this for a company called brlc. This company was on the naked short list for like a year. The problem is with smaller companies if they have a secondary they have to dillute the shares more than they need to. In this case LEH failed on its own.
     
  13. doublebogey

    doublebogey Member

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    free market my ass.
     
  14. DaDakota

    DaDakota If you want to know, just ask!
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    A first step would be stop the naked shorting, make people put some money down to cover their bets.....

    DD
     
  15. rimrocker

    rimrocker Contributing Member

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    This is ridiculous. I can't believe the SEC will prohibit shorts sales.

    Guess I better go ahead and order these UGA shorts to complete my collection...

    [​IMG]
     
  16. DaDakota

    DaDakota If you want to know, just ask!
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    The problem is that you can not invest in a startup corporation without first QUALIFYING as an investor.

    It is much easier to short a stock and you don't necessarily have to be able to cover the short, which is the problem.

    If you short, you should be covering it while you are shorting.

    DD
     
  17. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    dd...not being rude but that doesn't make sense from a transaction perspective. i'm not sure if you understand how the shorting process actually works if you believe you never have to cover.
     
  18. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    nah it is just naked short selling. that only means that firms aren't allowed to lend out shares of companies for people to short unless they are 100% sure that shares are available to short.
     
  19. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    leh failed because they were liars and in way over their heads...not because of people who were short their stock exposing the bs of lehman.
     
  20. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    that isn't naked shorting.
     

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