Comments on: Is the Devil playing the market?

By: IS

IS — Sun, 02 Aug 2009 17:40:17 +0000

Yes, heard about this but did not read details. From what I understand, “naked short selling” has always been illegal but not really looked at by regulators, guess it will be from now…

By: OneDay

OneDay — Mon, 27 Jul 2009 18:22:40 +0000

FYI The Securities and Exchange Commission on Monday (July 27 2009) made permanent a rule designed to curtail abusive “naked” short selling.

By: OneDay

OneDay — Tue, 24 Mar 2009 18:01:36 +0000

Technically, there is no delivery time limit. But yes practically, the short seller can ending up closing the position.

I’m not saying that naked short sell is good or bad, but it remains that some forms of it are still illegal. I agree with you that short selling has not been created by the devil. Short selling is necessary to prevent prices from reflecting only the views of the most optimistic investors in the market. However some can advocate that this can depress stock prices.

Ahhhh still a subject to debate!!

By: IS

IS — Sat, 21 Mar 2009 16:38:04 +0000

ok but to close a short position,you do need to buy back the shares, so how can you not have the intention of delivering the shares… you will end up doing so eventually no?

By: OneDay

OneDay — Fri, 20 Mar 2009 19:44:48 +0000

OK, short selling is not always naked. And I’m not talking about using options or anything. I thought that short selling is with the intent of later purchasing the financial instrument at a lower price. So technically, you need to ensure that cash or equity is on deposit with his brokerage firm as collateral for the initial short margin requirement.

Being naked short selling is a practice of speculation that can bring the price down, with NO intention of ever delivering the shares. In some place, it is not considered illegal yet… not that evil yet…

By: Carnival of Personal Finance#196: Music Edition

Carnival of Personal Finance#196: Music Edition — Mon, 16 Mar 2009 11:34:25 +0000

[...] The Intelligent Speculator looks at the media’s viewpoint of short sellers with the question, Is the Devil playing the market? [...]

By: IS

IS — Sat, 14 Mar 2009 14:26:17 +0000

Just to clarify, from my point of view short selling is always naked.. I was not talking about using options or anything, simply about being outright short. Was that what you meant OneDay and Dana?

A “naked short” is when you short and your broker fails to borrow the shares, which is illegal by th way.

By: The Financial Blogger

The Financial Blogger — Sat, 14 Mar 2009 12:39:12 +0000

One Day,
I would say that short selling has been created by the Devil and naked short selling has been created by Wall Streets financiers (which are more evil than the father of evil ).

Seriously, I still wonder why naked short selling was created in the first place. It is completely against the nature of the market (who is seeking growth over long term).

By: The Financial Blogger » Blog Archive » Financial Ramblings Achievements Edition

Sat, 14 Mar 2009 11:00:53 +0000

[...] Speculator thinks that the Devil is playing the market. Better be on his [...]

By: Dana

Dana — Fri, 13 Mar 2009 22:41:55 +0000

Great point OneDay, naked shorts and shorts are very different. The former is highly speculative, if not manipulative in nature, the latter can be paired with a buy or short to protect the downside of a position.