Silicon Investor (SI) -- The First Internet Community

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.

Pastimes : Richard Ney and the Wall Street Gang -- Ignore unavailable to you. Want to Upgrade?

To: BenYeung who wrote (139)	1/30/1998 12:21:00 PM
From: Pink Minion	Read Replies (1) \| Respond to of 492

Short selling is a "sell order". period. Does selling cause declines? Yes, there has to be a buyer to short sell. Maybe short selling prevents a stock from rising. Mr. B

To: BenYeung who wrote (139)	1/30/1998 1:00:00 PM
From: ccryder	Read Replies (1) \| Respond to of 492

An up tick is easy to arrange if you are a specialist/MM and want to enable others to short. After he has shorted what he wants it behoves him to enable others to short. So trade one pocket to the other and bingo, an up-tic.

To: BenYeung who wrote (139)	2/1/1998 8:29:00 PM
From: m-top	Respond to of 492

>>I came across many sites, and some people have been saying that short selling causes declines.<< It all depends on "who" is doing the short-selling. If, on balance the public has sold short, you can expect the market to be moved higher in an effort to force the public short-sellers to cover or buyback their shares. A share sold short by the public is purchased and therefore held "long" by the marketmaker. Therein lies the incentive to rally prices and sharply, to panic the public shorts into covering. If on the other hand, the market makers are on balanbce short, once they have completed establishing their short positions, then the market will be moved lower. >>This short-selling rule was implemented by the SEC to avoid the acceleration of stock prices. << The short sale uptick rule was actually implemented to give the market maker/specialist yet another edge (as if they didn't have enough already). Naturally, it was offered up to the public by good 'ole Joe P Kennedy as a win for the investor. As Market makers have complete control over when an uptick occurs via control of price, they now can control at what price level the public is allowed to short. >>Just a question, am I just smoking too much sh*t or are other people stupid. << Probably a little of both!