Naked Shorting-Hedge Fund & Market Maker manipulation? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: pcyhuang	7/24/2008 10:38:56 PM
	Read Replies (1) of 5034

Effectiveness of SEC's New Rule on Abusive Shorting To find out the market impact of the new SEC rule against abusive shorting, I have constructed a portfolio based on the 19 selected stocks, and another one based on several market benchmarks, using the closing prices of July 14 (I read about the news on July 15). Moreover, I assume $100,000 investment in each name. The 19- stock portfolio: The Benchmark portfolio: To date, despite the nearly 300 points market correction yesterday, the 19-stock portfolio is up 19.94% while the benchmark portfolio is up only 6.15%. You may also notice that among the benchmarks used, the financial sector has way outperformed the others. We conclude therefore that the new SEC policy against abusive shorting has been very beneficial for the selected companies. Therefore, we recommend the SEC expands the rules to the entire market so we may be safely out of the shadows of abusive shorting. Once the market's bear trend has been reverted to a bullish trend, the FED then may consider a gradual rise in interest rates to support a strong-dollar policy. Cheers,

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next