shorts are good or bad, page-6

"Short sellers with their rumours tactics crashing many company's in our markets"


Short selling has never been the cause of company crashes. It's always been mismanagement.

By the same token, there is a lot of newbie drivel around this site today bemoaning the demise of 'free markets' because of the temporary ban on short-selling. Short selling has always been a restricted activity, eg 'approved lists', %limits, up-tick rules etc. Short selling will return, but it will return with new rules, disclosure being the obvious one.

Secondly, there is nothing you can do with shorting a physical stock (eg hedging or taking a directional bet) that you cant do in a million other ways in the ETO, futures or the OTC warrant markets.



.