The Long-Term Stock Exchange Opens for Business

Re:The Long-Term Stock Exchange Opens for Business by yholio on Thursday September 10, 2020 @04:31AM (#24430135)

Not only it's a bad idea to ban shorting, but it's almost impossible to do outside regulatory action by the SEC and even then.

Shorting is essentially borrowing the control of stock to some other party. That's it. It doesn't have to be done on the market, it can be done in a private, confidential contract where I oblige myself to sell my stock when directed to do so by yourself, provided adequate warranties exist that you will cover the price difference when I want to purchase it back.

For this ceding of control, I get paid. The market only "sees" regular buying and selling of stock.

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Re:The Long-Term Stock Exchange Opens for Business by vlovich123 on Thursday September 10, 2020 @09:46AM (#24432300)

Ignoring the SEC for a moment, I don’t follow your reasoning. Why couldn’t buying shares require you to sign a contract that you’re not going to engage in various activities such as shorting? That would preempt any private arrangement you attempt to make. You of course could make an illicit secret agreement but you’d still be breaking and invalidating the contract you bought your shares under exposing yourself to various risks and penalties

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Re:The Long-Term Stock Exchange Opens for Business by nine_k on Friday September 11, 2020 @11:18AM (#24443735)

How would you detect that, though?

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Re:The Long-Term Stock Exchange Opens for Business by vlovich123 on Saturday September 12, 2020 @01:14AM (#24450013)

Exercise to be left to the reader. How is collusion and conspiracy detected now?

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Re:The Long-Term Stock Exchange Opens for Business by nine_k on Sunday September 13, 2020 @01:42AM (#24458669)

I suppose, mostly by chance, or by technical mistakes if the perpetrators?

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Re:The Long-Term Stock Exchange Opens for Business by captaincrisp on Saturday September 12, 2020 @10:27PM (#24457691)

I believe that's the SEC's job.

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Re:The Long-Term Stock Exchange Opens for Business by andrewjl on Sunday September 13, 2020 @04:16PM (#24463626)

Presumably by auditing all the prime brokers.

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