turkeyeyes

Combating Cascading Short Spirals

Actually, the so-called 'circuit-breaker' is little more than a 'short-appeaser'.
Such a mechanism allows a stock to be shorted down as much as 20% on a given day before a 3-day trading hiatus kicks in.
Shorts can gouge out up to 20% before the circuit breaker kicks in. Why should this be permissible? Over 5 trading days of continuous assault, a stock could be decimated.
If the stock is only shorted down to 19% on a given day, no 'circuit-breaker' activates.
This is not acceptable.
The SEC must ban shorts now in line with major European partners.
It's time for longterm investors to have their investments protected and for companies to be valued for their fundamentals, not devalued via lies and innuendo.

Combating Cascading Short Spirals

Let's stop the shorts in their tracks BEFORE they decimate another business.
Cox, get some balls and ban them, just like the UK and many other countries did.

Fear and Greed: Premise for Capitulation and Overreaction

If short-selling isn't detrimental, why this:
news.yahoo.com/s/nm/20...

Fear and Greed: Premise for Capitulation and Overreaction

Let's have some discourse on just why the various countries have banned short-selling if it is so beneficial in terms of reduced volatility, establishing fair values, etc., etc.

Anyone?

Fear and Greed: Premise for Capitulation and Overreaction

wpdragon, If the gov't makes no distinction between the damaging potential of short sellers vis-a-vis naked shorts in banning them both, why should I have to be concerned with what is, perhaps, not much more than a semantic distinction?

Both types of shorts are pernicious and create very negative financial 'karma' in the market and must be tightly regulated, if not outlawed, to create a positive, and growing, market.

Enough of these negative types spreading rumors and hoping that particular stocks, and possibly the country, fail just to maximize their short returns.

Yeah, I pissed off about what they've done.

Fear and Greed: Premise for Capitulation and Overreaction

Sure, folks should have the right to purchase a number of protective puts matching their long position in a particular stock, but that's it.

I encourage interested investors to contact their representatives and the SEC regarding continuing a short selling ban.

Further, the SEC should publish shortsellers short lists under the freedom of information act and put a robust uptick law in place, now.

Fear and Greed: Premise for Capitulation and Overreaction

Countries banning shorting - Reuters:

FACTBOX-Short-selling bans in various countries
Tue Sep 23, 2008 4:53pm BST

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Sept 23 (Reuters) - Stock market regulators around the world have introduced curbs on short-selling, especially in financial stocks. Short-sellers are investors who borrow shares and sell them on in the hope of buying them back at a lower price to make a profit. Those who do not borrow the securities in advance of the sale are "naked" short sellers.

Following is a glimpse into actions taken by some countries around the globe to curb short-selling:

* AUSTRIA:

-- There is no provision in Austrian law to ban shortselling. Regulator FMA has tried to curtail shortselling instead by declaring that shortselling beyond a certain volume is deemed probable cause for market manipulation or insider trading. It has reminded participants of their duty to report to the FMA if they suspect others to hold short positions exceeding 0.25 percent of an issuer's share capital. This would then trigger further investigation.

* AUSTRALIA:

-- The Australian Securities and Investments Commission banned short-selling on Monday for at least one month to help stop the share market plunging. However it eased its blanket ban on Tuesday to allow investors trading the difference between share prices on dual-listed stocks to make covered short sales.

* BRITAIN:

-- On Sept. 18, the Financial Services Authority banned investors from shorting the shares of 29 financial companies, including the UK's biggest banks and insurers. The next day four more companies were added to the list. The ban will remain in force until Jan. 16, 2009. * CANADA:

-- The Ontario Securities Commission, Canada's largest provincial securities watchdog, announced a temporary ban on short-selling in certain financial stocks on Sept. 19.

* GERMANY:

-- Finance ministry and financial watchdog BaFin banned on Sept. 19 short-selling of shares in 11 of its financial services until the end of the year.

* GREECE:

-- The stock exchange will flag short sales from Sept. 24 to Dec. 31. The regulator will publish a daily account of all short sales that took place during the trading day and the number of shares by company that were purchased by borrowing.

* ITALY:

-- Stock market regulator Consob banned short selling of bank and insurance stocks on Sept. 22 until the end of the month.

* LUXEMBOURG:

-- Luxembourg's financial regulator CSSF banned naked short sales on Sept. 19, with immediate effect.

* NETHERLANDS:

-- Dutch market regulator AFM on Monday released the names of eight financial institutions covered by a three-month ban on "naked" short selling of their shares.

* PAKISTAN:

-- Short selling in the ready and futures market of the Karachi Stock Exchange will be prohibited for a month starting from Sept. 24 when trading in the October contract begins.

* PORTUGAL:

-- Portugal's CMVM market regulator prohibited short-selling of financial stocks on Sept. 22. The ban applies to eight banks listed on Euronext Lisbon.

* SINGAPORE:

-- Singapore Exchange said late on Monday that it would tighten rules to discourage "naked" short-selling. Traders who cannot deliver shares they sold will now face a penalty of 5 percent of the value of the failed trade subject to a minimum of S$1,000 ($710).

* TAIWAN:

-- Taiwan's Financial Supervisory Commission said on Sept. 21 it was reimposing a ban on short-selling shares in 150 companies below their closing prices in the previous session. Investors cannot short stock in 150 companies in the Taiwan 50 Index, the Taiwan Mid-Cap 100 Index and the Taiwan Information Index from Sept. 22 to Oct. 3.

* USA:

-- The U.S. Securities and Exchange Commission has temporarily banned short selling in the stocks of 799 financial companies. The ban will stay in force until Oct 2. (Writing by Jijo Jacob. Editing by David Cutler and Andy Bruce)

Fear and Greed: Premise for Capitulation and Overreaction

Einhorn at Greenlight and others at similar firms colluded in spreading rumors, lies and innuendo. This will be borne out by SEC investigations that will result in many of these liars going straight to the federal pen.

Don't tell me that shorts make any positive contribution. If they are so beneficial to markets, why are they now banned in over 20 countries?

Try again. maybe someone will believe you.

Fear and Greed: Premise for Capitulation and Overreaction

Short selling ban must be made permanent and a more robust uptick rule must be devised.

Rapacious shortselling hedgefunds nearly ruined the economy based on lies and innuendo.

Paulson and Bernanke: A Conspiracy of Dunces

The disaster didn't come with an Owner's Manual.