If the SEC can ban shorting in the US, they must be able to do it here as well. I would love to see that whole part of the market go away and not for the reason most would allude to.
I don't want to see "naked shorting" which is illegal continuing under the blanket with legal shorting of stocks.
Its been said before. Shorting is a major part of stock price valuation and isn't in itself bad as it keeps the price of stocks from going into the stratosphere where they may not likely belong. I like to thing of shorting the stock as a means of bringing the stock back down to the reality level. The problem is shorting, if too intense has the same "herding" effect that stock price "euphoria" has when the price climbling like NOT did last fall to levels that were likely a few dollars over what they should have been.
This...is normal stock price movement based on due diligence by both investment types.
Naked shorting is like pumping and dumping. Its a false trading environment. It is manipulation of the stock price and it is being done by those who have too much money to be able to control the valuation. Lets get real. Shorting is not our problem...naked shorting is...but until they get a grip on naked shorting in Canada I say...blow they both away for now until they have the right means of controlling the problem.
Anyone have anything to add (or subtract)..
Mustangman