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Strategies & Market Trends : Short-selling - Information and discussion -- Ignore unavailable to you. Want to Upgrade?

To: peter michaelson who wrote (4)	12/1/2003 8:58:52 AM
From: rrufff	Respond to of 74

Interesting thread. I'd like to see shorting made easier for retail investors so that they don't have to try to open Canadian accounts or with "bookies" overseas. On the other hand, naked shorting just leads to a Wild Wild West market and fuels specualtion. The underlying problem may indeed be with the market making system. With the advent of internet technology, there is no longer a real need to let MM's control the market. I'd rather see a more ragged market than one manipulated up and down to line the pockets of MM's. In fact, in thinly traded pennies, there often is no real market until the MM sees some chance to take advantage of a tout. Hedge funds have seen the niche and have taken advantage of it and there is nothing wrong with that. However, I suspect that the extent of their combined efforts in thinly traded stocks, tests the barriers of 10(b)(5) and other SEC regs. The SEC needs the manpower to investigate hedge funds and requiring more disclosure is probably the one way that the problem will become manageable. The relationship between paid bashers and to a lesser extent paid touts and funds or large trading groups also needs to have some rules and open air investigation.

To: peter michaelson who wrote (4)	12/2/2003 9:57:44 AM
From: Edscharp	Read Replies (1) \| Respond to of 74

Peter, "I support the prohibition against naked shorting assuming that shorting un-naked is generally available - which it is not in penny stocks in the U.S." If you don't mind could you expand on this point a bit? I think you're saying that naked shorting is ok if other means of short-trading are not available. Even though it's my understanding that naked shorting is not legal on penny stocks either. Perhaps you meant something else. P.S. I think this is a good idea for a thread.