Very valid points indeed.
While I don't mind people short trading, I must clarify, I don't like when they spread fear among investors to gain advantage.
As to your scientific evidence question, I know along with Australia, countries like France, Spain, Italy, Canada etc banned short selling during 2008'09 saga. Australia reinstated it as we know, not sure how other countries are going. If someone is involved in those countries' exchanges might be able to comment.
I assume there'll be still the factor of spreading fear in order for them to enter cheaply in a stock.
This statement might be controversial, but some may remember posters bashing BRN so much on HC a few years ago until they got their fill, and then turned to be pro Akida once they got their shares.
So whether short sales are gone or not, those with less integrity will continue to do their thing, when it's $$$$ on the line. Investors just will need to keep doing their DD, and as FF often says, have a plan and execute it without fail.
Sign the Petition:
Ban the Predatory Short Selling of Financial Securities
Recently, we have seen billions of dollars wiped from global and Australian equities markets in part due to the practice of
Short Selling. This predatory trading technique is often executed in conjunction with algorithmic "bot trading" and has lead to the destruction of the hard earned savings of
everyday investors,
self managed super funds and
retirees.
In particular, the
big four banks (
ANZ,
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NAB,
WBC) have had their shares savaged by offshore short sellers which has impacted the large amount of Australian investors currently holding these companies.
During the
Global Financial Crisis (GFC), we saw regulations introduced to ban the short selling of financial stocks to add stability to the financial system. Once the market stabilised and confidence returned we saw these short selling bans removed.
We now see ourselves entering a similar period of uncertainty where international hedge funds are targeting Australian financial stocks to gain exposure to the overall Australian market. We now believe it is reasonable to reinstate these bans on short selling in the financial sector as a measure to add financial stability to the market.
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I agree as BL has mentioned it has been banned!! (suspended) before in hard times maybe it's time to do it again!!
During this volatile time, we believe that this counter-productive trading activity should be banned to protect everyday Australian investors who rely on the stock market to build their wealth and fund their retirement.
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Our proposed short sell ban would be structured as follows:
- An immediate ban on the short selling of stocks in the Financial Sector;
- The unwinding of existing short sell positions on such stock; and,
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Our goal is to protect mum and dad investors, retirees and self managed super funds from having their wealth erased and their quality of life reduced by this hostile trading method.
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