naked short/short regulation thoughts ... VOW events
Despite the fact of my wild enthusiasm about Porche's old school cornering culprit, my opinion about short selling is still the same - it must be banned. Yes, I am aware of the theory that short selling helps to keep prices from share moving too far up... but the reality is stock markets are supposed to be methods of people investing in a company and for a company a method of raising capital. Short selling does neither of those things, it simple allows someone to gamble on price movement. It does not help a company raise money nor allow people to invest in a company. The fact that VOW was worth more than XOM only because of short sellers being caught short; that confirms the theory of to insure proper market pricing is complete bunk. Will stocks see prices higher than they should without short selling? Yes, because market information isn't perfect some people will invest beyond the true value of a company... but because they do purchase at that higher price they are really just showing the true supply/demand relationship of a given stock, something that is distorted by short selling... markets do not have perfect information and will not... so what? The market is what it is and needs to be allowed to function as it does not be manipulated by artificial things like short selling.