Cognito, are you referring to share 'buy-back' ? If yes, they have bought back approx. 1m shares every day in recent weeks and approx. 2.5m shares daily prior to that, which is a way of returning value to stockholders.
If your shares are held within an ISA and you wish to purchase more you are always required to place a limit on your purchase price in order that you do not commit to spending more cash than is available your ISA account
Which part in particular do you regard as "Stupid" and why exactly? do try to provide some reasoned arguement..... it is just another part of price discovery, in the same way that large buying pressure is. The activity of shorting in itself is not the problem, it is the lack of regualtion around it, and the algorithms that kick in as a result of it and magnify any movements. Remember, however, I could sell short a good company relentlessly, and if the fundamentals are there, there will be buyers, and therefore limited or no impact on the price. The price fluctuates on short sales where there are no buyers at the current price, indicating negative sentiment.
I agree there needs to be more regulation (on things such as shorting, high frequency trading and the automated algorithms) but banning is not the answer. Would you also advocate a ban on derivatives?
Shorting shouldn't be banned, it is an important part of price discovery and not in itself a tool for manipulation. Also, it is helpful for large institutions or pension funds to lend out shares to obtain a yield on an asset they feel may be range bound. Yes, like all other areas of trading it is open to abuse, but I think it should be dealt with through better regulation rather than an outright ban.
Also, if you set a limit order on your holding (to sell at a ridiculously high price so it is not triggered in error) your shares are unavailable for stock lending, so this is a nice easy option for the individual.
I understand that it is only shares held just through a nominee company that are available for shorters to borrow if so the remedy is in our hands, either hold paper or become a CREST sponsored member. If we're too mean to protect ourselves why expect anyone else to do it for us. I'm afraid governments tend to pass laws to protect the rich, not mugs like us. Just look at the record of the last socialist government.
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