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This question may be impossible to answer. I'm not sure if the information that divides short selling from regular selling even exists.
I wonder if the short selling ban actually aggravated the recent selloff.
Consider, when a stock declines dramatically, many shorts will take their profits, and cover their short positions, thereby providing some buying support and slowing the decline. When the ban went into effect, were existing short positions forced to close?
Yes they had to cover..that's why there was such a rally in some stocks before the ban went into effect. Covered shorts is normal business but naked shorts mean you do not have the stock to cover your "sell". That is illegal but was allowed for some reason. The ban on shorts though was targeted at financial companies.
And some investment websites have hinted that these banksters were going after each other..big short positions on their competition.
Who best can manipulate stock prices but insiders ?
Actually, those already in short positions before the ban DIDN'T have to cover. Many DID cover, though, because they were afraid the ban would give stocks a boost.
Actually, those already in short positions before the ban DIDN'T have to cover. Many DID cover, though, because they were afraid the ban would give stocks a boost.
With a 3 day settlement they had to either buy back in the open market or produce the certificate. The trade settled in 3 days..ban or no ban.
With a naked short you don't HAVE the borrowed shares. You never actually borrowed them..hence "naked" short.
Yes, I know. But the question (and this thread, as far as I can tell) is about the ban on shorting financial stocks, not on naked shorting. Two different things.
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