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Is Short Selling To Be Banned?

After the rumours (manipulation?) about French banks it seems like the EC are looking at a possible blanket ban of short selling.
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
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Comments

  • michaels
    michaels Posts: 29,231 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Always best to shoot the messenger in these circumstances.
    I think....
  • ffacoffipawb
    ffacoffipawb Posts: 3,593 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    StevieJ wrote: »
    After the rumours (manipulation?) about French banks it seems like the EC are looking at a possible blanket ban of short selling.

    I agree with doing this. You shouldn't be allowed to sell something you don't own.
  • I agree with doing this. You shouldn't be allowed to sell something you don't own.

    There is a difference between short selling and naked short selling - only the latter is shorting something you don't own.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    yes, quite wrong to bet against an asset bubble; after all asset bubbles do no harm do they?
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    michaels wrote: »
    Always best to shoot the messenger in these circumstances.

    You mean the messanger who is spreading it around that a certain bank is going bust and France are about to lose their AAA status. I hope the authorities can trace them.
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    StevieJ wrote: »
    You mean the messanger who is spreading it around that a certain bank is going bust and France are about to lose their AAA status. I hope the authorities can trace them.


    do you object because the rumour is true, because it's false, because you don't know or because no-one should be allowed to say that publicly until after it's happened when all the rich people in the know have been able to bail out and before the ignorant ordinary people?
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    CLAPTON wrote: »
    do you object because the rumour is true, because it's false, because you don't know or because no-one should be allowed to say that publicly until after it's happened when all the rich people in the know have been able to bail out and before the ignorant ordinary people?

    Too easy for said rich people to manipulate these markets with false rumours.
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    StevieJ wrote: »
    Too easy for said rich people to manipulate these markets with false rumours.


    so even if the rumour is true, you would prefer mugs like us aren't allowed to know until after the event?
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    CLAPTON wrote: »
    so even if the rumour is true, you would prefer mugs like us aren't allowed to know until after the event?

    What if they are not true and you sell your shares into a falling market (or stop losses kick in) only to bounce back the next day with you out of pocket and some hedge fund quids in?
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • michaels
    michaels Posts: 29,231 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    So it is fine for govt's to claim everything is hunky dory and growth will be 1.7% this year when it will obviously be much less but wrong for others to give their opinions (that may or may not be more accurate)?

    Traders can chose whether to trade on 'rumours' or not just as they could trade according to charts or sunspots or whatever. Can the price of a multi-billion dollar company really be manipulated by false rumours - if this is the case why do people invest in shares at all as surely they are just arbitrary.
    StevieJ wrote: »
    You mean the messanger who is spreading it around that a certain bank is going bust and France are about to lose their AAA status. I hope the authorities can trace them.
    I think....
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