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To: GVTucker who wrote (23678)6/25/1999 3:15:00 PM
From: Dave B  Respond to of 93625
 
GV,

On the other side of the coin, without short selling, a large buyer or seller would have a huge market impact. If you prohibited short selling, you'd have to also prevent market makers from short selling. Market makers subsequently couldn't quote near the market they can nowadays, which would lead to much larger spreads. In turn, that would mean that a large buyer or seller would have to influence the market to a much larger degree, increasing volatility.

Thanks. For a nefarious guy, you're extremely helpful <G>.

I think from your earlier posts the statement above would apply primarily to the low-float stocks -- is this correct?

Thanks again,

Dave