I mean they just rid of the rule and the market seems to be getting killed. The fix must be in! It used to be since 1929 crash when Joe Kennedy crashed the market by shorting stocks as they fell (creating huge amounts of down volume on stocks) that they(sec) made a rule that you could only short on an uptick and now they got rid of it. WHY?
2007-11-22 13:47:50 · 2 answers · asked by rbarsom 1 in Business & Finance ➔ Investing
So the brokers could make more commissions. People weren't sure what to do waiting for an uptick so its gone.
2007-11-26 10:34:57 · answer #1 · answered by Whats Up Doc 7 · 0⤊ 0⤋
The SEC supposedly did a report which disclosed that the reason for currently shorting a company's stock reflected the current substandard financial health and substand future earnings of a company, which would be a logical reason for shorting a stock.
Shorting a stock doesn't automatically cause it to fall.
2007-11-23 02:17:34 · answer #2 · answered by !!! 7 · 1⤊ 0⤋