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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (9745)	7/30/2008 12:44:13 PM
From: Real Man	Respond to of 71450

Yes, that's right - you can short through variety of available derivatives, so this does not restrict shorting per se. For example, deep in the money put is the same as being short a stock. There are also single stock futures, and it is not difficult to short a stock through that. New regulations could make it more difficult to enter a hedge for some who are not "on the allowed list" In addition, since they make shorting more difficult, companies in distress may find themselves in more trouble, since bond holders in these often hedge by shorting the stock. Restriction on hedging actually could increase volatility.