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Message: Re: Canadian short selling ban
1
Oct 07, 2008 08:19AM
1
Oct 07, 2008 09:45AM

RE: If there is no one FORCED to BUY (short sellers) then the
SP's can dribble down WITHOUT ANY RESISTANCE.

The short seller is forced to buy back the position previously sold (on spec that it would be at a lower price). If too many think this way, then it will artificially create a lower price (lots of selling). In such a case, the shorter (forced to buy back) wins -- and was partly responsible for the stocks price drop.

During normal times, maybe (depending how the "borrowing' of stock is done in the first place). During extreme turbulent times - I understand the ban (

Unless I misunderstand something...

SAN at .82 - hard to believe~!



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