Will you sell short your shares?

Will you sell short your shares?
Sep 23, 2008 04:50
JIMMYB Points: Join Date: Feb 7, 2007 Status: offline	Last week, some countries banned short selling of shares since the markets had been affected by the financial crisis in US. Now Companies in UK and US start to appeal to the security regulators to seek for protection from short selling. The Securities and Exchange Commission in US had made a list of US stocks to protected from short sellers. This week, about 96 companies were added to the list. GM (General Motor), GE (General Electric) and GLG Partners are included. Why do those investors sell short their shares? Actually, those short-sellers just borrow the shares and then sell out them in hope of buying them back at lower prices. In this way, they can make profits. It seems that it is a good way to make money. Otherwise, the countries needn't ban short selling. Will you sell short some shares to make money?

Sep 23, 2008 04:50

JIMMYB
Points:
Join Date: Feb 7, 2007
Status: offline

Last week, some countries banned short selling of shares since the markets had been affected by the financial crisis in US. Now Companies in UK and US start to appeal to the security regulators to seek for protection from short selling.

The Securities and Exchange Commission in US had made a list of US stocks to protected from short sellers. This week, about 96 companies were added to the list. GM (General Motor), GE (General Electric) and GLG Partners are included.

Why do those investors sell short their shares? Actually, those short-sellers just borrow the shares and then sell out them in hope of buying them back at lower prices. In this way, they can make profits. It seems that it is a good way to make money. Otherwise, the countries needn't ban short selling. Will you sell short some shares to make money?

Sep 23, 2008 22:21	#1
COOLSPRINGS Points: Join Date: May 19, 2008 Status: Offline	Jimmy, if you have holdings, you never know where the brokers transport them to. It's just like your bank deposits are used by bank for investment or loan but you can withdraw them at any time. Short selling is to cool down unreasonable soring but irregulated operation is always happening in emerging economy.

Sep 24, 2008 04:37	#2
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Short selling is to cool down unreasonable soring but irregulated operation is always happening in emerging economy. Coolsprings, why did this happen in the developed countries?

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