A hypothetical question for the finance people... | |
2XSecretAgent
(OP) User ID: 134741 United States 01/16/2008 10:49 AM Report Abusive Post Report Copyright Violation | Come on all you stock junkies! Don't make me pin this to get your attention~ Let's agree to respect each others views, no matter how wrong yours may be. ------- There are no stupid questions, but there are a LOT of inquisitive idiots. ------- Contact: [email protected] |
Omega
User ID: 356403 United States 01/16/2008 10:58 AM Report Abusive Post Report Copyright Violation | I don't short stocks, instead, I am long ammo, so I don't know. :>) Veracity, you wanna take this one on bro???? Handguns are a skill; shotguns an art; rifles a science. _____________________________________ Democracy is two wolves and a sheep voting on whats for dinner. Disarmament is the precursor to Genocide. Better to take action now rather than chances later. Your choice. |
Anonymous Coward User ID: 579 United Kingdom 01/16/2008 11:00 AM Report Abusive Post Report Copyright Violation | |
2XSecretAgent
(OP) User ID: 134741 United States 01/16/2008 11:00 AM Report Abusive Post Report Copyright Violation | I don't short stocks, instead, I am long ammo, so I don't know. :>) Quoting: OmegaVeracity, you wanna take this one on bro???? I know it's all funny money anyway - right? Let's agree to respect each others views, no matter how wrong yours may be. ------- There are no stupid questions, but there are a LOT of inquisitive idiots. ------- Contact: [email protected] |
2XSecretAgent
(OP) User ID: 134741 United States 01/16/2008 11:01 AM Report Abusive Post Report Copyright Violation | depends if you are referring to normal shorting or "naked" shorting which is technically illegal. Quoting: Anonymous Coward 579Can you explain what you mean by that? Let's agree to respect each others views, no matter how wrong yours may be. ------- There are no stupid questions, but there are a LOT of inquisitive idiots. ------- Contact: [email protected] |
Omega
User ID: 356403 United States 01/16/2008 11:03 AM Report Abusive Post Report Copyright Violation | I don't short stocks, instead, I am long ammo, so I don't know. :>) Quoting: 2XSecretAgentVeracity, you wanna take this one on bro???? I know it's all funny money anyway - right? What I do know is the major players on wall street monitor short positions and try and *stop them out* thru various illegal activities, like start a rumor, collude to buy large long positions to stop them out, shit like that. As far as the possibility of not paying up-sure-the whole system is corrupt. But as for the real technicalities of shorting, not up on it cuz frankly I don't have the balls to do it. Handguns are a skill; shotguns an art; rifles a science. _____________________________________ Democracy is two wolves and a sheep voting on whats for dinner. Disarmament is the precursor to Genocide. Better to take action now rather than chances later. Your choice. |
Anonymous Coward User ID: 579 United Kingdom 01/16/2008 11:06 AM Report Abusive Post Report Copyright Violation | [link to en.wikipedia.org] this should explain it. i would never put a penny into the stock market because of crap like this. Better off backing a horse or the fights IMHO. |
Anonymous Coward User ID: 260371 United States 01/16/2008 11:15 AM Report Abusive Post Report Copyright Violation | depends if you are referring to normal shorting or "naked" shorting which is technically illegal. Quoting: 2XSecretAgentCan you explain what you mean by that? normally to short a stock you must borrow shares..(to prevent shorting of more stock than actually exists) naked shorting ignores the borrowing rule. shorting can lead to a self-fulfilling decline in small sparsely traded issues...a bear raid so to speak. The SEC lifted the uptick rule last summer whish can also create a cascading effect. As far as shorting now..the easy money has been made. |
2XSecretAgent
(OP) User ID: 134741 United States 01/16/2008 01:04 PM Report Abusive Post Report Copyright Violation | It just seems like a really bad option to allow people to profit off of stocks going down in value - which in turn can cause the value to decrease. Let's agree to respect each others views, no matter how wrong yours may be. ------- There are no stupid questions, but there are a LOT of inquisitive idiots. ------- Contact: [email protected] |
Anonymous Coward User ID: 260371 United States 01/16/2008 01:07 PM Report Abusive Post Report Copyright Violation | Ok - it seems like my hypothetical scenarios are possible and that's why some regulations have been put in place to regulate short transactions. Quoting: 2XSecretAgentIt just seems like a really bad option to allow people to profit off of stocks going down in value - which in turn can cause the value to decrease. actually one of the more important regulations was lifted..the uptick rule...last summer. I personally do not short...but shorting is a benefit to the markets as it provides greater transperency into the markets...shorts are usually right on a stock cause they really do their homework as their losses are not capped. |
Anonymous Coward User ID: 331956 United States 01/16/2008 01:20 PM Report Abusive Post Report Copyright Violation | |
Omega
User ID: 340280 United States 01/16/2008 02:04 PM Report Abusive Post Report Copyright Violation | It just seems like a really bad option to allow people to profit off of stocks going down in value - which in turn can cause the value to decrease. Quoting: 2XSecretAgentI am sorry 2x, I do not understand your position here. Investing in stocks is a bet, are you saying that we should only be allowed to bet a stock will go up???? Handguns are a skill; shotguns an art; rifles a science. _____________________________________ Democracy is two wolves and a sheep voting on whats for dinner. Disarmament is the precursor to Genocide. Better to take action now rather than chances later. Your choice. |
mathetes
User ID: 327572 United States 01/16/2008 02:07 PM Report Abusive Post Report Copyright Violation | It just seems like a really bad option to allow people to profit off of stocks going down in value - which in turn can cause the value to decrease. Quoting: OmegaI am sorry 2x, I do not understand your position here. Investing in stocks is a bet, are you saying that we should only be allowed to bet a stock will go up???? The Fed already does this for the big players! LOL For I would not, brethren, that ye should be ignorant of this mystery, lest ye should be wise in your own conceits; that blindness in part is happened to Israel, until the fulness of the Gentiles be come in. |
2XSecretAgent
(OP) User ID: 134741 United States 01/16/2008 03:45 PM Report Abusive Post Report Copyright Violation | It just seems like a really bad option to allow people to profit off of stocks going down in value - which in turn can cause the value to decrease. Quoting: OmegaI am sorry 2x, I do not understand your position here. Investing in stocks is a bet, are you saying that we should only be allowed to bet a stock will go up???? No... and I'm not at all a stock guru as you can tell by my questions here. But it seems to me that there is a greater potential for abuse and ability to create a negative impact on the individual business as well as overall stock market with this practice. You want to hurt someone in business? Buy a bunch of their stocks short and do something to hurt their value - and you make money and the other guy suffers a double whammy. Let's agree to respect each others views, no matter how wrong yours may be. ------- There are no stupid questions, but there are a LOT of inquisitive idiots. ------- Contact: [email protected] |
Omega
User ID: 340280 United States 01/16/2008 03:58 PM Report Abusive Post Report Copyright Violation | It just seems like a really bad option to allow people to profit off of stocks going down in value - which in turn can cause the value to decrease. Quoting: 2XSecretAgentI am sorry 2x, I do not understand your position here. Investing in stocks is a bet, are you saying that we should only be allowed to bet a stock will go up???? No... and I'm not at all a stock guru as you can tell by my questions here. But it seems to me that there is a greater potential for abuse and ability to create a negative impact on the individual business as well as overall stock market with this practice. You want to hurt someone in business? Buy a bunch of their stocks short and do something to hurt their value - and you make money and the other guy suffers a double whammy. Sure,a business that lie's on earnings (most of them, lol) , makes shitty products, offers shitty services, don't meet stockholder expectations, etc, et al, DESERVE to get their asses shorted. It's a casino, and as such, you place your bets, for or against, and take your chances. Same as it always was. Handguns are a skill; shotguns an art; rifles a science. _____________________________________ Democracy is two wolves and a sheep voting on whats for dinner. Disarmament is the precursor to Genocide. Better to take action now rather than chances later. Your choice. |