Finding bullet firms work either since the bullet firms who sell you the bullets have to short the stock so you can buy them .If they restrict short sells it will affect them right?
SEC is mad now, although their new chairman vows to protect small investors. But in fact all their regulation lobbied by special interest groups have been destorying the fair free market. F8ck'em.
I do agree with you but you are wrong about one thing. The rules in regards to short-selling are different on the NYSE and the NASDAQ. A NASDAQ small cap or micro cap(Must be labeled or identified by the NASDAQ) doesn't have to meet any "Bid test" or "Plus tick rule". It's a little known rule that is always ignored by trading software. It works through Instinet terminal and I believe a redi plus terminal(Not 100% sure). The only problem, as you stated, is that most of these stocks are short sell restricted and almost impossible to borrow.
Actually, the article is correct. There is a gov. agency named Farmer Mac. They finance loans on agriculture. www.farmermac.com
There's always the alternative of short call, long put= synthetic short stock. No uptick involved. Not quite as convenient though and may be some cap outlay initially.
The article refers to 3 companies shorted by Gotham Capital Partners. The only problem with their positions was that they chose to publicize them, allegedly to benefit their existing position. This was poor judgement on their part. They have since liquidated and their actions and are being scrutinized by regulators. This type of "proposed action" usually comes after a prolonged period of selling. So many have lost money that there needs to be someone to blame and hold accountable other than themselves. Let the traders daytrade and allow the investors to do the appropriate level of fundamental research. Once the problems surface regarding the lack of liquidity that would result from a one sided market, these ideas will be cast aside. The unintended consequences from anything close to this proposal would be disastrous for the small investor, let alone many institutions.
after the crash of '29, witch hunt like government activity occured to find and punish the unamerican short sellers who obviously caused the debacle. looks like history is repeating. enjoy ! surfer
great article....but I was more interested in the very last statement about " this is separate from their investigation into the hedge funds"......seems to me that that would have more of an effect on a lot of trading firms then the other rules...
Oh, how right you are. I hope everyone here will take it upon themselves to write/call/pester the SEC and/or your members of congress before they embark on this ridiculous crusade. It just never ceases to amaze me the ignorance and lack of historical perspective the government as a whole possesses.