you are viewing a single comment's thread.view the rest of the posts
And so... the next time DSCO or some company like them announce some bit of bad news...and a big bunch of longs want to sell their stock all at once, who exactly is going to step in and buy those shares you are soooo desperate to sell?
It won't be other longs... they are trying to sell theirs too. It won't be vultures waiting on the sidelines to scoop up shares at the bottom... you haven't hit bottom yet... there is no one going to step in and grab at your falling knife... the stock plunges even more... and the cycle accelerates and deepens. Now we have what should have been a minor correction turning into a major blow out... where is the bottom?
The bottom can be established by shorts stepping in and not risking one cent. Just the act of closing out their position at a profit slows the plunge and sops up your excess shares you so desperately want to sell.
If it weren't for the shorts... who exactly is going to grab that falling knife and keep it from dropping even farther??? And please don't say "the market maker" He is going to be playing both sides of the trades... actively participating in the action but not affecting it in any way. Every share he buys he will quickly sell... every share he sells he will quickly repurchase... his books will balance at the end of the day whether yours do or not.
Be very careful what you ask for.
I've noticed that every time the fire department shows up somewhere, there seems to be a fire!. We need to get rid of that dam fire department so we won't have any more fires!
Come on Dutchboy, there is a huge difference between shorting and "naked short selling". The idea that you can take a huge gamble on a company and do it without showing the cash is ridiculous, and the fact that Wall Street even allows it is criminal. Try betting in any casino by verbally making a bet and not showing cash or chips. The difference between 'shorting" and "naked shorting" is huge and to try to hide the difference is either stupidity or lying.
it appears that this is the opening salvo regarding the liability of the brokers letting their customers trade without supervision, the risk exposure, the fact that these customers may not agree with our rules against insider trading. this press release also indicates that any correspondent broker activity must also be supervised by the broker with the license to trade in the united states. correspondent brokers are customers of the american broker. the american broker is risking their capital.
brokers must supervise any trading activity 11/30/2011. the SEC is unlikely to delay this further, as they now view this trading activity as probably conducting illegal trading and probably causing outflows of $ from american investors to unknown entities overseas.
FINRA disciplinary action against OC Securities
FINRA Case #2010021779801
counterfeit stock certificates and anti-money laundering violations at a brokerage
further, these broker audits will seal the deal.
the stock market needs the shortsellers like fish need bicycles.
i just want to know where the shortsellers want to take the stock price down, so that i can buy the cheapest shares.
"And so... the next time DSCO or some company like them announce some bit of bad news...and a big bunch of longs want to sell their stock all at once, who exactly is going to step in and buy those shares you are soooo desperate to sell?"
LOL. Macroeconomics! Suply and demand. NO buyers and no sellers...then the price stays flat.