Short selling on stocks that should not be shortable certainly...

  1. 3,715 Posts.
    Short selling on stocks that should not be shortable certainly is!

    How is it not a conflict of interest for Opes to allow their clients to purchase (margined) shares, then to lend those same shares out to others for a fee?

    On the other side of the coin, it is manipulation in that people were able to buy leveraged speculative shares (eg. buy twice as many ADY shares as they could afford).

    On top of that, share lending does not follow either the up-tick rule or reporting requirements that true shorting does.

    Speculative shares have enough risk without adding additional problems.
 
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