What is the true goal of restricting shorting stocks?

Discussion in 'Trading' started by Option Trader, Feb 15, 2010.

  1. Recently, I became aware of the very high carry costs for HTB costs, which maybe all traders have, except the market maker (as it seems to me). The fact there is not a level playing field, and the fact the market maker is able to do tremendous damage to the stock price personally* and without the help of any other shorts, what is REALLY being achieved by restricting shorting stocks and who is it really helping? Is it really helping the individual stocks? Or is the REAL goal to help the market makers?

    Are the market makers anyway the big institutional financial companies which America wants to support for the purpose of America's recovery? And if so, does this answer the whole question as to why there is not a level playing field?

    *If it can be shown in any way the market maker is restricted, and his requirement to keep a "fair and orderly market" is being enforced, then I gladly take this back.