Posted on 05/18/2010 11:12:27 AM PDT by nickcarraway
The stock market fell deeper into the red amid reports that Germany will issue new restrictions on bearish trading.
SNIP
Germany will ban so-called naked short-selling from midnight, a lawmaker with the ruling Christian Democratic Union told Dow Jones Newswires. He added that Chancellor Angela Merkel will announce the plan in her speech to the lower house of parliament Wednesday morning.
Naked short selling—which differs from short selling in that the sold shares aren't borrowed in advance—came under fire at the height of Greece's struggle to refinance its debt, with many euro-zone governments saying such transactions in credit-default swaps, a type of default insurance, artificially inflated Greek funding costs.
(Excerpt) Read more at online.wsj.com ...
Yup. Good post. Ask any company that has been attacked by shorts with naked short selling. Disgusting.
Yes, and no.
You can short a stock and you have three days (the settlement window) to borrow the shares to cover the short.
If you’re a market maker, you have six days.
You can still open a short position without borrowing the necessary shares when you open the position.
In today’s computer-driven market, the three day window for settlement is pretty much ‘forever’.
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