if shorting is illegal in germany , then i dont know what explains the dismal performance of bmw share price this past three or four months , the company is in very good shape overall and had terrific numbers last quater
...shorting is illegal in Germany & Spain; don't know why they allow this in Ireland; it is detrimental to the small investor; many times what I have seen are large uncrossed trades between one account and another account; whre both may well be owned by the same trader and no $$ is at play; no loss..in the meantime the large traders are sitting on their holdings and trying to buy more stock on the cheap; if the govt's sells their 14% share it would just get worse; it would become a giant financial orgy;
shorting is a very tough game as your losses are theoretically unlimited unlike for the longs. I have a lot of respect for those that short legally, they have b-lls of steel & generally are very knowlegable, they have to be
I dont agree. If any participant thinks a share is overvalued they have every right to execute a covered short exactly the same as someone who thinks its undervalued has the right to buy. You cant restrict those who think its overvalued, the market needs all legally executed fair views. It is not the case that shorting=manipulation. Its a legitimate way to back your view, nothing more. An efficient market needs shorts. on what basis would you bring a covered short to court? Because he thinks a share is overvalued? Should we bring buyers to court for daring to think its undervalued?
Can never make my mind up which is the worst ,the institutions that lend the shares for fee or hedge funds that hire them out they say its legal .Banks said the same some time back about P P I now we know dif Was shorting ever tested in courts What i do know if share is shorted,price has to be manipulated
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