StockFetcher Forums · General Discussion · Free Market ?<< >>Post Follow-up
msg #88646
Ignore einok
2/24/2010 11:55:44 AM

On Wednesday February 24, 2010, 11:34 am

WASHINGTON (AP) -- Federal regulators have imposed new curbs on the practice of short-selling, hoping to prevent spiraling selling sprees in a stock that can stoke market turmoil.

A divided Securities and Exchange Commission voted 3-2 Wednesday to adopt new rules.

The rules put in a so-called circuit breaker for stock prices, restricting for the rest of a trading session and the next one any short-selling of a stock that has dropped 10 percent or more.

Short-sellers bet against a stock. They borrow a company's shares, sell them and then buy them when the stock falls and return them to the lender -- pocketing the difference in price.

63 posts
msg #88647
Ignore dickysofa
2/24/2010 12:04:35 PM

I know this will open a can a worms but...

There has never been a free market in the history of this country. The free market is a myth...

msg #88649
Ignore einok
2/24/2010 12:14:01 PM

I think they should restrict trading for any stock that has popped us 10% or more..... How about that?

7,885 posts
msg #88656
Ignore karennma
2/24/2010 1:38:00 PM

"Once the rule takes effect in 60 days, securities firms and stock brokers will have another six months to revise their trading systems to implement the changes."

Nice of them to give Goldman Sachs TIME to upgrade their High Frequency trading robots.

265 posts
msg #88670
Ignore trendscanner
2/24/2010 5:28:12 PM

It occurs to me that the reason why the PTB (Powers That Be) or the PPT (Plunge Protection Team) would implement this rule at this time is that they anticipate a major downward move in the market sometime soon....and are scared that it could get really out of control.

683 posts
msg #88671
Ignore duke56468
2/24/2010 5:34:28 PM

Re-instating the up-tick rule would be a step in the right direction, why not start there?

788 posts
msg #88673
Ignore gmg733
2/24/2010 6:52:26 PM

Balderdash. What the regulators are too ignorant to figure out is the big money is in options. AND they don't address 'short' ETFs. Oh, there is money to be made. :)

7,885 posts
msg #88680
Ignore karennma
2/24/2010 7:51:02 PM

I just copied thiis off Stocktwits:
"Feb. 24 at 7:46 PM # Anybody else see the new short selling rule as an invitation for algo manipulation? $$ "

My sentiments exactly!
The govt's 6 month grace period mentioned in my previous post, simply gives HFTs time to recalculate their algorithms.

847 posts
msg #88691
Ignore miketranz
2/24/2010 10:57:53 PM

There's three reasons why the fed wants to restrict short selling.1)The company could get hurt.2)The shareholders will get hurt.3)The short sellers(mostly professionals) will make large amounts of money at the expense of others.The moral of the story is short selling is a very profitable way to make money.Stocks go down much faster than they go up.....

msg #88723
Ignore einok
2/25/2010 11:46:22 AM

I don't think there is a reason to restrict/halt trading one way or the other (other than some 9/11 event.) I have made good and bad trade decisions. Once I make the decision I live with it. I think an investor or trader deserves their profit if they have made the correct analysis.

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