Should short selling be illegal?
Posted by | Posted in Political Debates, Society Debates
photo taken from mspmentor.net
According to Wikipedia.org, short selling “is the practice of selling assets, usually securities, that have been borrowed from a third party with the intention of buying identical assets back at a later date to return to the lender. The short seller hopes to profit from a decline in the price of the assets between the sale and the repurchase, as he will pay less to buy the assets than he received on selling them. Conversely, the short seller will make a loss if the price of the assets rises.”
Should short selling be illegal?
Yes, I believe it should. What good is it that people are profiting when stocks go down? This is setting up terrorist actions and stuff.
Short selling is complete crap. You shouldn't be able to sell something you don't own period.
Agreed Andrew. However, people will always find a way to make that extra buck, especially at the expense of other people.
Yea, stocks are very volatile when it comes to the news. There is no good whatsoever in it.
This is a practice that has resulted in a loss for the short seller more than 90% of the time according to those that I have consulted with about buying and selling in the stock market.
I would advise against that sort of risk.
Just my not-so-humble opinion.
Millionaires were made during the recession because of this practice. It's so easy to destroy and so hard to create. We shouldn't encourage destruction at all, there is no good in it.
What? It's not like the rich aren't the only people who can use this financial investment.
Yea but it's encouraging destruction.
No. Works as a "pre-emptive" market signal if it is accurate about price discovery, and basically hoses the people who try to do it if it isn't.
Don't see what the problem is here.