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Politics : America Under Siege: The End of Innocence

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To: cAPSLOCK who wrote (4199)9/20/2001 9:03:10 AM
From: joseph krinsky  Read Replies (1) of 27666
 
That's another old argument.
I doubt if the markets need liquidity right now do they.

But even in times or circumstances where a stock is hard to move because it's "illiquid", what's the difference?
The company doesn't get any of that money, it's just money between traders.
But the important thing is that the price would come down or go up to the point where someone would buy or sell it anyway. That's the things work. If you want to sell, and no one wants to pay your price you lower your offer until someone takes it and if you want to buy and no one wants to sell, you raise your price until someone wants to sell it.

You might make the argument that the people that are the middlemen the specialists and MM's could use the "liquidity" argument but the general public that short are not doing it to provide liquidity, they are doing it to make money.

Shorters are no more "noble" than anyone else.
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