ASX Today, page-41366

Way back in the day of the early 2000's I recall having raised the issue with others on the forums and remarking that I regard short selling as "negative equity" insofar as it actually takes a unit of investment dollars from the investor and sells it. It may not be as simplistic as that, but the impact is that negative equity has relevance if a company wishes to do a capital raising as the negative/borrowed and sold equity competes with available new equity for investor interest. In other words, it is not a practice that has no material bad consequences in markets. Of course before the ASX became a listed entity, there was not the same level of incentive to increase market turnover. But now!!...ASX has every reason to promote turnover like this and so they are part of the problem and no doubt strong lobbyists with government to promote it as something of merit. Merit to whom though is the question?

regards
DF