Shorting11 Dec 2017 13:26
It is correct Drunk - look at the recent example of Carillion where 25% of the share float was owned - sorry borrowed - by Shorters, and the first sign of problems at the company and the share dived from 220p down to 20p! Basically, they are vultures and parasites who like to profit from other's misery. As P1s, we cannot do it - only the big boys with guaranteed accounts, who can borrow shares at a fixed level and then pay for them at a later stage. Not sure how the timing works on the contract, whether it's loose or fixed - whatever, its an obnoxious practice and has been outlawed on occasions of financial crisis, by Norman Lamont for instance. Should be totally banned in my view, and it further encourages the general public's opinion of dodgy practice in the City.