Short selling has gotten a bad rap lately. If you look at the markets with an open mind you will see that there are people who believe that stock XYZ is going up and Joe the investor wants to buy it to make money. Yet if you talk to a dozen people there will be those among them who say that stock XYZ is no good, that earnings are bad and that the stock will drop further. Here is where the notion of short selling comes into play. If you allow an investor to buy XYZ stock, it is not fair to prevent an investor from selling XYZ stock. Markets are always two sided. There are buyers and there are sellers, otherwise... why have a market?
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