Re: Shorting makes billions...

HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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shortty

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Re: Shorting makes billions...

in response to

Shorting makes billions...

jonboy

posted on Jul 19, 2008 07:53AM

Can an experienced trader on this forum help me with a concept that has been on my mind? It seems to me that if short selling was completely outlawed, that stock market volatility would be dramatically reduced. I am beginning to believe that the shorting of good companies causes the SP to drop for no other reason than the short sales - if shorts were not active, the SP would be more stable.

It also seems to me that those who want to feed on the downside of stocks could do so using the options markets without creating the downward pressure on SP.