What a b.s. article. There is nothing inherently immoral in uncovered short sales by third party investors. The concerns are simply first, suitability and second, credit. Brokers already have a legal obligation to ensure that unsophisticated customers are not making trades that are unsuitable for them, which may well include short selling, depending on the circumstances. And institutions are required by margin regulations and their own prudent self-interest to make sure investors have enough assets to cough up their losses on short-selling, if they guess wrong, because the exposure in theory is limitless.
>> What a b.s. article. There is nothing inherently immoral in uncovered short sales by third party investors.
I noticed you are new to Free Republic. Could you please be more honest in the future? The purpose of naked short-selling, a techinique used by hedge funds, is to cheat the unsophisticated investors out of their money. It is fraud.