May 4, 2009
I have never understood how short selling benefits the market. It seems to me that the market will control prices because if a company is not doing well there will be few buyers for its stock and the price will drop on its own without the help of short sellers who have a vested interest in the share price going down. It would make sense to me that if you can make money by driving prices down there should be some restraints on your ability to drive these prices down, therefore some sense of an uptick rule would appear to benefit all participants in the market.