Comments on: What is Naked Short Selling and What Does It Mean To the Market? http://csinvestor.com/what-is-naked-short-selling-and-what-does-it-mean-to-the-market/ Simple Principles for Intelligent Investing Thu, 24 Jun 2010 21:16:30 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Vito Rispo http://csinvestor.com/what-is-naked-short-selling-and-what-does-it-mean-to-the-market/comment-page-1/#comment-698 Vito Rispo Thu, 24 Jun 2010 21:08:39 +0000 http://csinvestor.com/?p=170#comment-698 Ireland- you are saying that wealth is a zero sum game. This is not true at all. People do not gain wealth at the expense of others, in reality, when one person get rich, it benefits society as a whole. Ireland-
you are saying that wealth is a zero sum game. This is not true at all. People do not gain wealth at the expense of others, in reality, when one person get rich, it benefits society as a whole.

]]> By: Vito http://csinvestor.com/what-is-naked-short-selling-and-what-does-it-mean-to-the-market/comment-page-1/#comment-697 Vito Thu, 24 Jun 2010 21:05:27 +0000 http://csinvestor.com/?p=170#comment-697 Also, to Get Real... the logic behind banning short selling is deeply flawed for another reason: short selling is the function that keeps manipulative investors from manipulating long positions. For example: the common wisdom says that a bad bad man could spread bad bad rumors about a company, sell short and make tons of money. The market fixes this buy allowing informed investors to buy up long positions in a company's stock when its price is artificially depressed... Now, flip that around What if a bad bad man spreads false rumors about a company's profitability, while trying to buy long and makes tons of money? Well, the only for the market to fix this is to allow investors to sell short, so they can profit on the company's artificially increased price. Without that function, the market loses the ability to keep inflated prices down. It's just common sense. Also, to Get Real…
the logic behind banning short selling is deeply flawed for another reason:
short selling is the function that keeps manipulative investors from manipulating long positions.

For example: the common wisdom says that a bad bad man could spread bad bad rumors about a company, sell short and make tons of money. The market fixes this buy allowing informed investors to buy up long positions in a company’s stock when its price is artificially depressed…
Now, flip that around
What if a bad bad man spreads false rumors about a company’s profitability, while trying to buy long and makes tons of money? Well, the only for the market to fix this is to allow investors to sell short, so they can profit on the company’s artificially increased price. Without that function, the market loses the ability to keep inflated prices down.

It’s just common sense.

]]> By: Vito http://csinvestor.com/what-is-naked-short-selling-and-what-does-it-mean-to-the-market/comment-page-1/#comment-696 Vito Thu, 24 Jun 2010 20:59:43 +0000 http://csinvestor.com/?p=170#comment-696 to Get Real... Name one single sound company, actually name one single company, sound or not, that has been ruined by short selling. I understand that it is the folk wisdom to think short selling is a bad bad thing, but when you fully comprehend how it works, you can understand how it is an important part of the market's price setting power. to Get Real…
Name one single sound company, actually name one single company, sound or not, that has been ruined by short selling.

I understand that it is the folk wisdom to think short selling is a bad bad thing, but when you fully comprehend how it works, you can understand how it is an important part of the market’s price setting power.

]]> By: ireland http://csinvestor.com/what-is-naked-short-selling-and-what-does-it-mean-to-the-market/comment-page-1/#comment-690 ireland Wed, 24 Feb 2010 13:50:08 +0000 http://csinvestor.com/?p=170#comment-690 the whole thing is nuts. they should get rid of the stock market. remember for someone to get richer some one else must get poorer. so someone gains and someone else looes. even if the loss is spread over thousands of people they may all loose a penny. we're just all greedy trying to make it rich in the worlds at someone elses expence the whole thing is nuts. they should get rid of the stock market. remember for someone to get richer some one else must get poorer. so someone gains and someone else looes. even if the loss is spread over thousands of people they may all loose a penny. we’re just all greedy trying to make it rich in the worlds at someone elses expence

]]> By: Luis Granados http://csinvestor.com/what-is-naked-short-selling-and-what-does-it-mean-to-the-market/comment-page-1/#comment-661 Luis Granados Fri, 10 Apr 2009 16:25:40 +0000 http://csinvestor.com/?p=170#comment-661 It goes along with Soros's reflectivity theory. If he has made a fortune as a hedge manager and he is telling everyone who wants to hear that the market is not fair since there are insiders manipulating and profiting, why I should doubt it? Basically is like to have a thief self confession and the police does not want to hear or accept what he is telling everyone It goes along with Soros’s reflectivity theory.
If he has made a fortune as a hedge manager and he is telling everyone who wants to hear
that the market is not fair since there are insiders manipulating and profiting, why I should doubt it?
Basically is like to have a thief self confession and the police does not want to hear or accept what he is telling everyone

]]> By: Get Real http://csinvestor.com/what-is-naked-short-selling-and-what-does-it-mean-to-the-market/comment-page-1/#comment-576 Get Real Tue, 25 Nov 2008 18:49:15 +0000 http://csinvestor.com/?p=170#comment-576 As usual, justification can be made for any argument. My argument is that if you don't own a stock, why should you be able to sell it? How would you like someone selling an interest in a company you own who had never put up any money? How about having someone sell a naked interest in your home when you think it will worth more 5 years from now? The fact is that the market often reacts to trends for a reason...because the process is so crooked that often insiders and their cohorts act before the rest of the world gets the official news. And the typical reaction is called covering your ass. The argument that prudent investors should know that the fundamentals of a company are sound and not worry is complete BS. Many a sound company has been ruined by manipulative short selling. The markets have evolved from a true investment vehicle to a huge casino. I say go to Las Vegas....check that...the casinos usually require that you buy chips before you start gambling...oh well. As usual, justification can be made for any argument. My argument is that if you don’t own a stock, why should you be able to sell it? How would you like someone selling an interest in a company you own who had never put up any money? How about having someone sell a naked interest in your home when you think it will worth more 5 years from now? The fact is that the market often reacts to trends for a reason…because the process is so crooked that often insiders and their cohorts act before the rest of the world gets the official news. And the typical reaction is called covering your ass. The argument that prudent investors should know that the fundamentals of a company are sound and not worry is complete BS. Many a sound company has been ruined by manipulative short selling. The markets have evolved from a true investment vehicle to a huge casino. I say go to Las Vegas….check that…the casinos usually require that you buy chips before you start gambling…oh well.

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