(Photo courtesy - The Web)
I was hoping that this would happen and finally here it is. The Feds and the Securities Exchange commission are planning to ban short sales temporarily ( might be Finance stocks). ( Britain has already banned shorts in Financial stocks today)
In my opinion, 'Short sale' must be banned totally. I've always felt stock markets are authorized gambling dens and Short sales are the crown!
For those of you who don't know what a short sale is - It is to sell a stock you don't own and then buy it back at a lower price, pocketing the difference. Though there is a lot of risk, market players who have tons of money can easily manipulate the market by shorting ! Today we know how markets are driven !! Mostly manipulation by big time players !! ( MHO).
There was a controversy a few weeks back that commodities trading was driving oil up and not the actual demand/supply situation. There was a talk about banning oil trades. It died down..but suddenly oil fell from around 150$ to now around 100$ ! Was that a coincidence? ( I still wonder...why this steep drop !! )
I don't know why these transactions were allowed in the first place. Glad that the Feds are looking at this at least now.
In my opinion, 'Short sale' must be banned totally. I've always felt stock markets are authorized gambling dens and Short sales are the crown!
For those of you who don't know what a short sale is - It is to sell a stock you don't own and then buy it back at a lower price, pocketing the difference. Though there is a lot of risk, market players who have tons of money can easily manipulate the market by shorting ! Today we know how markets are driven !! Mostly manipulation by big time players !! ( MHO).
There was a controversy a few weeks back that commodities trading was driving oil up and not the actual demand/supply situation. There was a talk about banning oil trades. It died down..but suddenly oil fell from around 150$ to now around 100$ ! Was that a coincidence? ( I still wonder...why this steep drop !! )
I don't know why these transactions were allowed in the first place. Glad that the Feds are looking at this at least now.
Let's see where Dow goes tomorrow. I speculate - atleast 100 points up !!
