yeah, if it weren't for the uptick rule, i could go out right now and hit a few nas stocks that only do 10k a day, short the shit out of them, and be the controlling shareholder before the markets close. ...sounds OK to me...
Then why not do that in any of the futures products that have thin volume? Futures have no uptick rule yet there is no sense that short sellers can move in and control the market and more than the longs can. Shorts have to be covered at some point.
i'm not a futures trader, but 1)nobody's bigger than a futures market, and 2)limit down would kick in and stop you. **plus - futures products actually have some legitimate VALUE. most naz stocks that do under 10k a day are basically worthless anyway. if i were to tank a naz stock - say some tiny biotech - as soon as it started to plummet MMs would stop taking stock and let it go...stops and nervous shareholders would contribute to this...
What is the cost for bullets and conversions ? While trading withou them cost you, lets say 5 dollars a trade plus ECN fees (0.0050). What would cost to use them? Thank you regards Raphael
A classic manipulation by which such people as JP Morgan made fortunes (Bear Raid). He would use his enormous wealth to relentlessly sell stock short..driving the price down with the rest of the frenzy...then he would cover and own a controlling interest in the company for a cheaper price...this was perfectly legal before the securities act of 34......
Think he meant buying back in at a low price as per JP. BTW, car makers did a similair thing for years. Give more and more business to a supplier until they were like 80% of revenue, forcing them to borrow and invest in capital equipment etc. Then they would pull their business forcing the company into bankruptcy and then pick up the assets at knock down prices. Loan money to the old managers to buy their own company back and repeat 1. Same in construction. BTW, BTW, the practice of financing customers to buy your own equipment like the telcos have done is nothing new either. It's common practice. It's an excellent way to take over a customer who is strong if you are the primary creditor.
What is the cost for bullets and conversions ? While trading withou them cost you, lets say 5 dollars a trade plus ECN fees (0.0050). What would cost to use them? Thank you regards Raphael
Try the search feature on this site. The subject of bullets and conversions has been discussed numerous times, including the cost of them. I pay 2.5 cents/share for bullets. You still have to pay the regular commission to actually sell the stock. I've never gotten a conversion, but I think it works out to somewhere in the neighborhood of 5 cents/share plus interest costs on the stock.