Canada short selling ban

Discussion in 'Stocks' started by GHJK, Aug 18, 2011.

  1. GHJK

    GHJK

    Can you not short canadian stocks? All my shorts have been rejected
     
  2. Canada has a stock market?
     
  3. TGregg

    TGregg

    Canada has stocks? Damn.

    :D
     
  4. I love posts like the last 2. There's an old saying that says "Pride goeth before a fall".

    I guess in this case it's the other way around.
     
  5. Bob111

    Bob111

    Horizons BetaPro S&P/TSX 60 Bull Plus ETF - HXU
    Horizons BetaPro S&P/TSX 60 Bear Plus ETF - HXD
    Horizons BetaPro S&P/TSX Capped Financials Bull Plus ETF - HFU
    Horizons BetaPro S&P/TSX Capped Financials Bear Plus ETF - HFD
    Horizons BetaPro S&P/TSX Capped Energy Bull Plus ETF - HEU
    Horizons BetaPro S&P/TSX Capped Energy Bear Plus ETF - HED


    http://etf.stock-encyclopedia.com/category/stock-etfs.html

    for all gurus i have another question about US traded ETF's:

    if i short stock ETF, lets say BTF, i'm going to pay expenses fees? looks like if you long -it's 2.19%, but what if you short?

    Thank you!
     
  6. DrEvil

    DrEvil

    It's true, I've seen it with my own eyes. I even have a photo:



    [​IMG]
     
  7. Try looking at TSX vs S&P 500 over the last 8 years. Anyone invested in the S&P 500 was in the wrong exchange. It would be interesting to see if you invested $1000 American 8 years ago in each what that money would be worth now. Huge difference in returns.

    Canadians like watching American TV shows like Jersey Shore and Big Brother to get a glimpse into what Americans are like.
    George W. Bush was always interesting, probably one of your brightest given he was your twice elected leader. I mean, he was no Ronnie Reagan, but definately top of his class in Texas.

    :D
     
  8. Chagi

    Chagi

    Not going to state that I am a guru, but I will answer your question. :)

    To simplify, let's contemplate an ETF that is comprised of a basket of dividend paying stocks, with monthly distributions. This would be similar to shorting an individual company that pays dividends - the short would be responsible for paying the dividend to the long.

    The leveraged ETFs that you mentioned are a bit more complex, in that the ETF provider utilizes financial instruments, such as swaps, as well as potentially positions in the underlying, to accomplish a particular goal. Long holders of ETFs technically "pay" the expenses you are referring to, but do so from a NAV perspective (expenses reduce the net asset value of the ETF). A short position technically benefits from the expenses (again due to NAV), but the short would not receive any payment in relation to the expenses.