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Strategies & Market Trends : Short-selling - Information and discussion

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To: Edscharp who wrote (9)12/2/2003 10:50:25 AM
From: peter michaelson  Read Replies (2) of 74
 
Ed: Here is the basic logical flow of my philosophy.

1. Shortsellers are a very important market participant because they counteract bubbles, irrationality and stock hype and fraud.

2. The current regulatory environment makes short-selling of low priced stocks impossible, except that there are loopholes that are used by a few shortsellers to get around the regulations.

3. The best solution is to rationalize and clean up the current loopholes and murky short-selling environment, but at the same time make shorting possible in all stocks - especially penny stocks.

4. However, it would be a huge mistake to close the loopholes without opening other avenues to short-selling. As with doctors, the SEC's first consideration should be: Do No Harm.

I would like nothing better than to have a clean open environment and get rid of all the suspicions that surround short-selling. I feel it is an honorable, contrarian strategy that contributes greatly to market efficiency.

Peter
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