bots explained, page-9

""(without shorts, there will be no market....simply becuase no one will be selling!!!! we all will be holding stocks forever & we won't find anyone to sell to us any shares & no new investors will be coming to the market!!)""

IGO4IT,

If you recall, during the GFC the regulators introduced a stop/ban on shorting of any kind.

If you also recall, to the contrary of what you wrote, the market didn't stop working whatsoever. To the contrary, every investor and trader were still going their own ways and like business as usual without any outside interference.

The only thing that was different was that there were no shorting done/allowed in the market. As a matter of fact the market became a level playing field, the way that it was designed to be a long time ago. (By the way IMHO, the shorting came about after the introduction of computer handling of sale/trades by the ASX and aided by the computer speed of handling those trades). Another thing that helped the market changing was the fact that the issuing of shares was not required any longer, and all share holdings were recorded on the computer memories.
From then on, IT WAS EASY AS THE ABC for the manipulations and shorting to occurr. No real hard copy paper to prove ownership, which usually took a few days to process, and instead only computer records which can be easily manipulated and lent out to others to the disadvantage of unsuspecting shareholders.

It was when the regulators, under pressure form the big end of town, the Hedge Funds and all other interested parties, relented and reallowed the shorting to begin again that the rot came back in again stronger than before.

All this has been allowed with the arguments from the Hedge Funds, that shorting creates liquidity in the market and flush out companies that should not be allowed to be there, FOR THE PROTECTION OF INVESTORS.
Yeah right... It happen that I think differently and I believe that the protection of shareholders they are referring to, is a lot of hog wash. How can an investor benefit and be protected when he is the bunny that get skinned in the meantime..???

IGO4IT, I don't know how long you have been in the market, but remember one thing my friend... The market worked very well long before all this crapola has started. Think about it.

Good luck,

Buddy