InvestorsHub Logo
Boards
News
Market Data
Markets
Discover
Discover
Subscribe Login/Register
S&P 500
4,967.23
(
-0.88%
)
US TECH 100
16,576.00
(
-2.13%
)
Dow Jones
37,986.40
(
0.56%
)
Brent Oil
86.63
(
0.24%
)
Bitcoin
64,288.07
(
1.22%
)
Post# of 10217
Next 10
Reply Private New
Public Reply Private Reply New Post
Keep Last Read
Keep Next 10 Report Keyboard Shortcuts
Next 10 Prev Next

bartermania

Send PM Follow Ignore
Followers 21
Posts 6668
Boards Moderated 15
Alias Born 12/11/2004

bartermania

Re: None

Saturday, 04/16/2005 12:18:37 AM

Saturday, April 16, 2005 12:18:37 AM

Post# of 10217
SHORT SELLING, DEATH SPIRAL CONVERTIBLES, AND
THE PROFITABILITY OF STOCK MANIPULATION

John D. Finnerty
Professor of Finance, Fordham University
March 2005

Abstract

The SEC recently adopted Regulation SHO to tighten restrictions on short selling and curb
abusive short sales, including naked shorting masquerading as routine fails to deliver. This paper
models market equilibrium when short selling is permitted and contrasts the equilibrium with
and without manipulators among the short sellers. I explain how naked short selling can
routinely occur within the securities clearing system in the United States and characterize its
potentially severe market impact. I show how a recent securities innovation called floating-price
convertible securities can resolve the unraveling problem and enable manipulative short selling
to intensify.

The rest of the article is here: http://www.ncans.net/files/ssrn-id687282.pdf

_________________________________________________

Eliminate all shorting.

- I will not be a slave to or of death cults - n/b/k - NO QUARTER FOR CORRUPTION http://investorshub.advfn.com/boards/board.asp?board_id=3319

Public Reply Private Reply New Post
Keep Last Read
Keep Last Read Next 10 Report Keyboard Shortcuts
Next 10 Prev Next

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.

Sign Up