November 2, 2009
Posted: 1344 GMT

We've all heard financial experts talk about "shorting" the market, and the role that "short-selling" arguably played in the global financial collapse. But is it really such an awful financial tool? And are U.S. regulators correct in cracking down on the industry?

And in a Web exclusive, Stephen Figlewski of New York University take a long look at the world of short-selling.

Filed under: Biz Clinic • Financial markets • Investment


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TONY   November 3rd, 2009 1255 GMT

THE PRESS, THE MARKETS, THE MEDIA EVEN THE POLITICIANS ARE UNDER "THE CONTROLLERS" BECAUSE NOTHING GOES ON THE RIGHT TRACK; LOOK THE MAYOR OF WEST NEW YORK, N. J. 07093 AND THE COMMISSIONERS THEY JUMPED THE REAL ESTATE TAXES 50% IN ONE SHUT THIS YEAR AND NO WASHIGTON NOR THE REST OF COUNTRY STOP THIS ABUSE, WHY? BECAUSE ALL OF THEM (THE POLITICIANS) ARE ON THE SAME BOAT. WITH THINGS LIKE THESE PROVES TO ME THAT THE U. S. A. IS NOT A DEMOCRACY NO MORE GRADUALLY THE WAY IT GOES IN THE NEAR FUTURE WILL BE A COMMUNIST COUNTRY WITH ONLY ONE KING.
TONY

Phil   November 4th, 2009 637 GMT

How could betting on a loss or down turn ever be a good thing??? What other situation is there that you can bet on the loser?
Also, it is too easy to influence and/or cause a down turn in a given market and/or stock price with rumors and well placed articles of doom. Positive news never gets the reaction that negative does; it is human nature.
This is not for the good of all or for anything (other then for those who bet on doom and get it right or influence it to be right), should not be allowed and is a flawed concept!

Thomas   November 15th, 2009 2103 GMT

Do not forget what the stock market is intentended for: to give companies access to capital in return for a decent return under transparency. Short selling is an ugly behaviour realized by people that could just as well try their luck at the casinos of Monte Carlo or Las Vegas. Furthermore, the shortsellers would not be able to borrow shares at laughable rates if it wasn´t for the mutual funds and pensions funds that lend the shares. How many investors in these funds are aware of their fundmanagers behaviour? 1%? I think it is the fund managers buddies that calls for shares to borrow. The whole setup is disgusting. Shortselling should be banned. It would easy to live with, if you do not believe in a stock, don´t buy it.

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