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SEC may ban short selling again.

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Super Contributor
This most be good news for financial stocks in the US. Do you guys agree with the ban?
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8 REPLIES 8
Super Contributor
And bring back the uptick rule, where you can only short if the last trade was higher than the one before it. Slows down the effect of pile-on shorting.
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Super Contributor
I hope the JSE will also apply it here. Maybe our banks will stabelise.
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Amar
Contributor
It didn't work the last time, why would it work now....
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Not applicable
Last time they meddled like that, it caused the largest one-day gain on the markets in history. (I remember it clearly because I was short OML with all I had, and it opened 15% higher...) For the record, stocks still declined (with a lot of volatility). I can see no mention in the press of the possibilty of the ban's re-instatement - do you perhaps have a link?
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Not applicable
As mentioned before, short-term traders increase liquidity, which reduce volatility. All the anger directed at the shorts (who go long just as often or even more often) is misdirected.
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Not applicable
Thanks. I find this very frustrating - impossible to say which way the market will go when you don't know if / when they will change the rules. But they mentioned only meeting next month - so I guess we follow the downward trend until then...
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Super Contributor
In fact it made it worse if u look at the graph...but some politicians want to get reelected so what we can do....
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