SGH 0.00% 54.5¢ slater & gordon limited

Ann: Becoming a substantial holder, page-20

  1. 1,047 Posts.
    I am 'philosophically' opposed to the practise of "shorting" (as I believe Markets were intended to attract investors who "believed IN" the listed companies).

    As with everything else pertaining to 'human beings': "Greed" (aptly disguised as 'financial engineering'); Corporate influence on Government etc, not only allowed shorting, but clearly caused the GFC. So long as the 'revolving door' between Corporations and Government positions are allowed to exist, especially in the developed Countries, more and more 'innovative instruments' will evolve (and bite us on the back side. Or I should say, bite the public - and allow those who caused the financial distress a free pass).

    With that said, I guess we can TRY to look at the positive aspects of 'shorting'. "If" institutions or retail investors feel that a SP is definitely overvalued, it may at least serve to decrease the size of a 'bubble'. (Some may also cite employment for shorters).

    In the main, I am personally against the practise (as Institutions even downramp a stock without real basis, and even retail posters do the same on HC!).

    We just need to acknowledge its existence, and conduct our own continuing due diligence and reviews to either take note of or dismiss 'short' positions.
 
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