The Short View: Shorting ban - The Diigo Meta page

• 24 Sep 08
  

  Wesley Shu

  financial_crisis short_selling

  • The case against the shorts rests on two key items of circumstantial evidence. First, the end of the “uptick rule”, which only allowed short selling at points when a share price had just ticked up, came on July 6 last year, just as the S&P 500 peaked.
  • Short selling is a way to hedge against a fall in the market – a conservative strategy. Many investors have suddenly been deprived of a way to hedge. There are “synthetic” ways to achieve the same result, notably using options.

Would you like to comment?

Join Diigo for a free account, or sign in if you are already a member.