June 17, 2009
Short selling - June 17, 2009 - look closely at the action on RIMM this morning - how does a stock go down 5% in 60 seconds? I have never seen it go up like that, why in the world should it be able to get sold like that?
You want reasons to restrict short selling? Look at stocks like RIMM and how it is traded on a regular basis. The shorts often take over that stock during the trading day, moving it down 5% or more, only to buy it up at the end of the day or the next day - or conversely to sell it again the next day. This is done not on fundamentals and nor on technicals, simply on speculation.
That is not fair to the majority of the shareholders of a stock. The outright manipulation, yes it is manipulation, of stocks by short sellers has to be halted.
You want to restore confidence in the markets - restrict short selling. BRING BACK THE UPTICK RULE....