THIS POSTED BY AFR Where I have just invested in a monthly internet access, do you believe what they are say as in the next article where ASIC have taken a broker to court for NAKED SHORTING, using shares they do not have.
This was posted on my AFR account
Why banning short selling is a bad ideaShort selling is often seen as a predatory practice engaged in by “vulture” traders. But outlawing it may adversely affect the market.The experience of a nasty sharemarket sell-off can be made even more stressful for an investor who learns their beloved shares are being “short sold” by rapacious hedge funds and gunslinger traders.Not surprisingly, with many markets around the world enduring their worst start to a calendar year for decades, suggestions of a ban on short selling have resurfaced again, including in the Australian sharemarket.Critics have likened short-sellers to vultures. APBut research shows such bans are not only ineffective at stopping share price declines, they can be counterproductive.Short selling is where an investor sells shares that they don’t yet own, so it’s essentially the reverse of normal share trading.They do it because they think the share price is going to fall, and the profit they stand to make is the difference between the selling price and the price the shares are bought back for. So, if a share is sold at $15 and bought back at $10, the profit is $5, or 33 per cent.The practice of short selling is often seen as predatory, and the traders who do it as no better than vultures. At the height of the global financial crisis in 2008, short selling was banned on various international stock exchanges, including the US, Britain and Australia, in an effort to improve market confidence and reduce volatility. ASIC eventually limited the ban to short selling financial stocks.Then in response to the sharp stock market falls in March 2020, at least seven countries banned short selling again.However, a number of studies after the 2008 financial crisis to analyse the effectiveness of banning short selling concluded it had little effect on prices but did reduce market efficiency. For example, in 2011, the Federal Reserve Bank of New York concluded that “banning short selling does not appear to prevent stock prices from falling”, but instead “lowered market liquidity and increased trading costs”. The European Systematics Risk Board reached similar conclusions.
THEY ARE LOOKING for PREY and if you sell they will GET YOU------HOLD, HOLD,HOLD do you get the message, if not sell and leave us in peaces.to get where we were 9 months ago.
Should you not understand what and when sentences start and stop, that is Hotcopper is my problem as I transfer to word and post usually does not work.
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