Short selling (NAKED) ...the biggest crime... EVER ....see last post

DocProc

I am surprised the Financial Services Authority (FSA) found it necessary to ban short-selling.

The system depends on owners of large blocks of shares — eg, pension funds — lending them to speculators in return for a fee.

The profit-seeking motivation of the speculators is obvious, that of the lenders rather less so. Yes, they receive a fee, but they also receive back shares whose value has most likely fallen in companies that may be seriously damaged.

Strange that, in the fairly certain knowledge of this outcome, there still appeared to be such a ready supply of those big institutions ready and willing to lend that the FSA has had to restrain them.

purch

The system depends on owners of large blocks of shares — eg, pension funds — lending them to speculators in return for a fee

This has been part and parcel of the workings of the market for years and years, but as with all things the way the markets have developed and the greed of some market players is creating serious problems and making the normal market unworkable

The regulators do need to put controls on short selling in place, such as curbs on who can lend out stock and in what quantities and in what % of a holding.

An outright ban would be bad for the normal workings of the market.

All markets require speculators or they wouldn't work smoothly, nor have enough liquidity. Idiot Boy who was the OP on this thread clearly doesn't understand the way markets work..........naked shorting occurs in all markets, not just equity and is a legitimate and viable trading method.

TRUSt_NO_1_2

purch wrote: »

Got any REAL proof of this accusation ?



How about this wild claim ?

Counterfeit shares ???

Somewhere is some dimly lit back street someone is printing counterfeit share certificates, and then selling the shares ??

Wow............and no one other than Truss has noticed that there are Billions more shares being sold than these companies have ever issued.



I guess it's pointless expecting any proof of this either.



They :rotfl: :rotfl:

Have you heard of electronic trading ?
Counterfeiters don't need printers.

Heard of broker to broker deals ?
They just send false data to the exchange database.
It's so simple and quite within the rules.

Most of the people doing this are not 'London' based w4nkers who have braces (to hold their trousers up,not their teeth in place)
Most of them speak probably with strong Russian accents.They could not give a !!!!!! if the exchanges run in to future problems...as they inevitably will.They have very little chance of being taken to court as they do it over the internet.
Crime is a global industry...and the foreigners,who have seen hard times in the last 20 years, are taking idiots who run Western Exchanges (and many western investors) to the cleaners.

How do I know this ?
Murphy's Law.
If it can happen..it will.
I don't need data...it's human nature.
Don't give me this how the markets work crap.
Shorting is bo11ocks.

What do you think is going to happen to the markets in the future ?
Recovery ?
Boom times ?

TRUSt_NO_1_2

purch wrote: »

All markets require speculators or they wouldn't work smoothly, nor have enough liquidity./quote]

Dumb statement Purch ol' bean

All investors in the stock market are speculators ,as I'm not aware of any guaranteed returns on the stock market...unless you know something that no one else on the planet does ?

TRUSt_NO_1_2

DocProc wrote: »

I am surprised the Financial Services Authority (FSA) found it necessary to ban short-selling.

The system depends on owners of large blocks of shares — eg, pension funds — lending them to speculators in return for a fee.

The profit-seeking motivation of the speculators is obvious, that of the lenders rather less so. Yes, they receive a fee, but they also receive back shares whose value has most likely fallen in companies that may be seriously damaged.

Strange that, in the fairly certain knowledge of this outcome, there still appeared to be such a ready supply of those big institutions ready and willing to lend that the FSA has had to restrain them.

Simple reason is that the lenders who own the stocks often do not know that their stock is being lent out.
The brokers who are lending it out are often involved in the shorting activities and are acting against the best interests of their clients.

Only a complete imbecile would lend out stock to be shorted,unless the fees paid were something like 50% of the stock value...which they obviously aren't going to be...or they knew something the shorter did not that would protect the stock from a sudden collapse.

example:
"DocProc ,can I borrow all your stock to short it ol' chum ?
I'll give you 3% of the share value ! "
"Yeah,sure no problemo"
"Thanks mate"

whiteflag_3

Id have no problem buying shorts from someboby that was naked! :rotfl:

purch

How do I know this ?

I don't need data...

Enough said !!!! :T

The weird world of the conspiracy theorist :rotfl:

purch

Most of them speak probably with strong Russian accents

they do it over the internet

They just send false data to the exchange database

:rotfl::rotfl::rotfl:

wombat42_2

OK - I understand the naked bit - i have taken my clothes off - but not sure what to do next and I am getting quite chilly. I do have a pair of shorts though which i could wear :eek:

TRUSt_NO_1_2

wombat42 wrote: »

OK - I understand the naked bit - i have taken my clothes off - but not sure what to do next and I am getting quite chilly. I do have a pair of shorts though which i could wear :eek:

Do what you normally do....


play with yourself.