Government bans short selling from midnight ??

mw2655

does anybody know what his means for blackrock's UK absolute alpha fund?

cheers matt

purch

it's only naked shorting which has been banned in the States

Yes ..... they are very 'prudish' over there.....it's the old Puritan values :rotfl:

tradetime

I'm fairly sure it's only naked shorting which has been banned in the States.

Naked shorting is, and has always been illegal in the US, it's just that they have been very lax about enforcing it up until now.

tradetime

esbo wrote: »

And who exactly would be lending the sellers the stock in the first place?
Nobody in their right mind obviously?
Or someone (brokers) committing fraud.

Futhermore most of HBOS stock is held in their own system.

I'm curious, when you put money in the bank, with all this wreckless lending going on do you ensure the bank doesn't lend it out?

buglawton

Short selling is a way of betting on share price outcomes without necessarily having the funds to pay for the bet if it goes wrong, so like say driving too fast on a public highway, there might be grounds to make it illegal.

opinions4u

tradetime wrote: »

I'm curious, when you put money in the bank, with all this wreckless lending going on do you ensure the bank doesn't lend it out?

If they didn't lend it out, what would they pay you interest with?

What do you think they should do with it? Shove it in the safe and magic up 6% a year from the interest fairy?

poppy10_2

tradetime wrote: »

LOL, yes the government has decided that you should only be allowed to hold the opinion that stocks should go up. :rotfl::rotfl::rotfl::rotfl:

Yep - next they will apply this to the housing market. Noone is allowed to sell their house for less than they paid for it. Voila! No house price crash!

cheerfulcat

tradetime wrote: »

Naked shorting is, and has always been illegal in the US, it's just that they have been very lax about enforcing it up until now.

Not quite - from the SEC

[FONT=Verdana,Arial,Helvetica]Naked short selling is not necessarily a violation of the federal securities laws or the Commission's rules. Indeed, in certain circumstances, naked short selling contributes to market liquidity[/FONT]

The new rules in the US definitely only apply to naked short selling.

tradetime

opinions4u wrote: »

If they didn't lend it out, what would they pay you interest with?

What do you think they should do with it? Shove it in the safe and magic up 6% a year from the interest fairy?

No sxxt Sherlock, the point I was making is if you put your money in a bank you have no say in what it does, likewise if you hold your stock with a broker you have no say in who they lend them to or what for

esbo

tradetime wrote: »

I'm curious, when you put money in the bank, with all this wreckless lending going on do you ensure the bank doesn't lend it out?

They lend it out to all and sundry depending on which earns them the most bonus, it does not matter if it does not get paid back as long as they get their bonus because well, it's not their own money they have lost, it's yours
Heads they win tails they cannot lose.