Why a short-selling ban won't work

By Deputy Editor Tim Bennett Aug 19, 2011

Tim Bennett

Share with
friends:

Comments (8) Print this article

Tim Bennett explains the practice of short selling shares - and why a ban may do more harm than good.

• Watch all of Tim's video tutorials here

Comments (8)

Published in Video tutorials | More articles by Tim Bennett

Share with
friends:

Related articles

Comments

Leave a comment

  • 1. rob

    (20 August 2011, 04:47AM)  Complain about this comment

    Very good info.Just some advise.. fine lined pattern shirts and video do not go well together.. moire effect.. quite distracting.. plain blue shirt is good for video..

    Sorry to be picky ..

  • 2. Jaygor

    (20 August 2011, 11:20AM)  Complain about this comment

    Thanks. Tim. This is the clearest explanation I`ve ever received on how short selling works and why baning it is ineffective and wrong-headed, anyway.

    Will the politicos in the EU listen? I doubt it. Even banging their heads together wouldn`t do it.

    Let them sort out the mess they are in by themselves. We are well out of it. Let`s stay out of it.

  • 3. JRET

    (20 August 2011, 11:30AM)  Complain about this comment

    Great video - as are all yours! What happens to the dividend? Does the leander get the shares back before they go ex-dividend?

  • 4. Al

    (20 August 2011, 11:48AM)  Complain about this comment

    A simple and clear explaination, this guy should have his own TV series.

  • 5. Jo

    (20 August 2011, 12:33PM)  Complain about this comment

    Nice presentation - but I suspect an degree of obfuscation. Hedge funds and the like CAN instigate and exasperate a run on a stock that maybe OR may NOT be a risk. After all it is in the Hedge funds / speculators interest to sniff out opportunities whether they exist OR there is a just a rumour that it exists. Certain institutions/funds are influential enough to instigate a lack of confidence by proxy.

    You are right that a partial ban is stupid. Therefore it must be across the board. When it comes to derivatives, it matters not. An international across the board filters through the purposefully complex web of deceit that are CDO's.

  • 6. Jim

    (20 August 2011, 03:14PM)  Complain about this comment

    Very interesting.

    It makes me wonder why governments do ban it. They are receiving information about short selling from advisers. So is it the fault of the advisers?

    Of course the next question has to be "who are the advisers", they wouldn't be bankers would they?

  • 7. Tim

    (22 August 2011, 05:08PM)  Complain about this comment

    Jim. It comes down to governments being seen to "do something" (however pointless) when markets fall. Pity they don't feel the same need to act to stop bubbles building in the first place!

  • 8. Andreas

    (24 August 2011, 11:49PM)  Complain about this comment

    Good video. Agree with your arguments.

    Would love to see one with arguments around naked short selling. I can't understand why that is allowed, but as it is in most countries, there must be some pro arguments.

Leave a comment

This will be the name displayed with your comment.

This helps us verify comments are genuine. It will not be displayed anywhere on the site and is stored confidentially.

Please keep your comment within 1,000 characters and relevant to the main topic. We encourage healthy debate, but we don't allow insults or bad language. Anything off topic or unpleasant, we'll remove. Enjoy the conversation! Thank you.

captcha To prevent spam-related comments please enter the characters shown in the 'Captcha' box to the left.

By leaving a comment you accept our terms and conditions.


>