Anthony @ Equity Investigations, Dear Anthony, Message Board

STOCKTALK

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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: rrufff who wrote (91067)	3/27/2005 5:24:17 AM
From: RockyBalboa	Read Replies (1) of 122088

Restricting one side of the market (shorting stock that is) is turning the stock market into a casino and making it less efficient. Organised buy-in, temporary restrictions to borrow stock and "asymmetric" nonpublic information regarding the availability of stock loans makes price discovery impossible and a random process. The "naked shorting" issue is just one minor aspect, confined to otc stocks where indeed only a small part of market participants has access to borrows. And yes, the latest miscreants in terms of regulation (SHO that is) have made the markets even less efficient, save that for large capitalised issues where a developed derivatives market exists. It probably is as you say, keep the smaller market participants away from the lucrative business. Did you ever realise that in the past, delays in stock delivery have been made intentionally in order to prevent shorting an issue? Since i know this I have changed my focus and follow the commodities and currency markets for about 3 years. To be honest those markets did never disappoint me, and I'd think they are as efficient a market can be.

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