[Tenacious 1]

I might need a bit of education here. Apologies for the ignorance in advance.

I understand: China has determined that “short selling” is now illegal. That is betting that a stock will drop is a win much the way betting “don’t come” in craps. You essentially invest in the downturn of the stock (or market).

But “selling” a stock at it’s current price is still legal. Right? If so, then investors looking to offset losses in segments of the markets are hedging by further investing in future losses to reduce their own liability for what they hold. Right? Then there is the foreign investor that is looking to jump in and gain on the economic collapse (like a Soros).

Here is the question. If they have made “short selling” illegal, is that not the same as making the sale of stock also illegal (as it pertains to the stock)? How soon before they forbid anyone from selling their own stocks outright? China is trying to FORCE the decline to stop but disallowing the value of any stock from falling. But if there are no sales of stock (new investor money), how does that “help”?

Thanks for any education you can provide.

[SeekAndFind]

RE: But “selling” a stock at it’s current price is still legal. Right?

One proviso — If you are a large investor ( i.e., you own at least 5% of the company ) , YOU CANNOT SELL AT ALL until the government says so.