RE:RE:ShortingMarketmakers, bankers and brokers have tweaked shortselling to a very profitable way of lining their pockets.
I am in your corner in regards to shortselling and think it needs to be outlawed because originally the marketmakers were supposed to clean up the odd share lots and such but have elevated it market manipulation and loan sharking for those investors who borrow stock for an administration fee and financing for speculators who choose to borrow to make their investments.
Combine that with the SEC's approach which is fining them for colouring outside the lines but not enough to stop the practice. It has given the impression that the fines are a deterrent but are really an income source for Securities for paying tattletales and, I suspecet, bonuses to SEC personel.
Besides the huge revenue stream that can be garnered from commissions, there are also finders fees and high interest for high spec loans to invest in highly shorted stocks.
The biggest problem is that the shenanigans played by big money investors including brokers and banks becomes the driving force and removes the benefit of basic company building translating to increased sharevalue which is why most commonshareholders invest in the first place.
This market manipulation for huge profit runs in the face of public funding and the reason for it because it kills companies of good potential for short term gain for marketmakers of companies that may have thrived if they if they didn't get hammered unjustly with large shortsale orders and a plethora of bad news by the ones manipulating the shareprice and the story.
Securities is taking more interest in some of the goings on that are affecting companies and the amount of this that is happening has stopped me from wanting to play a game with a stacked deck or where big money can buy the pot anytime they want.
I expect that a lot of other common investors feel the same way.
glta and dyodd