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To: Thane_Banquo

Short selling should not be allowed. It can only occur by raiding investors accounts and using the margined stocks to “lend” to short sellers. No investor in his right mind would allow his stocks to be used for such a purpose if he had a choice.


12 posted on 03/16/2011 1:02:29 PM PDT by arrogantsob
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To: arrogantsob
Actually, many investors with a long-term time frame would like to lend their stocks to short sellers. They should, if they have a good broker, receive back a fee for lending, and since short sellers are short-term in their trades (you can't hold a short for a long time), it won't have a lot of effect on the stock price for a long-term investor. On top of that, short-sellers aid market efficiency by preventing stocks from becoming over-valued.

As well, you can tell a broker that you do not want your stocks lent out.

14 posted on 03/17/2011 5:43:24 AM PDT by Thane_Banquo (Mitt Romney: He's from Harvard, and he's here to help.)
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