Traders use stock loan desks to access securities to buy or to borrow to sell short.
And that is to sell short shares of public companies that are poised to go bankrupt.
Of those more then 42% are being borrowed by traders to sell short.
Imagine, when there is an earnings miss, the program automatically triggers orders to sell short and the stock plunges.
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The fact that the debt could be converted for a set dollar value of shares added an extra incentive to sell short.
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Since regulated mutual funds back then were not permitted to sell short, these portfolios could only be offered privately, in limited partnerships.
Because hedge funds are unregulated, managers are free to sell short, use leverage, and invest in illiquid securities--activities not open to mutual-fund managers.
Sedona made the investors agree not to sell short the shares.
Our year-end Love Only One contest invites analysts and money managers to stick their necks out by choosing one stock to buy or to sell short.
But Cox placed his hopes on a new and very far-reaching rule that makes it a crime to sell short, which is to bet on a stock going down.
The uptick rule, in place from the 1930s, forced traders who wanted to borrow stock to sell short to wait for an uptick in the price before putting on their trades.
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Similarly the price traders have been willing to pay for the privilege of borrowing Netflix shares, another reliable proxy for the demand to sell short, has been climbing steadily since summer.
There will be more bank failures no matter what, but the government wants to prevent otherwise healthy banks from unnecessarily failing because they are unable to sell short-term notes and bonds to fund their own activities.
The focus in the options market for us is that any tick rule, any situation where you would limit the ability to sell short, needs to be exempted for the options market makers--those professionals that provide liquidity into the market place.
Last month, on the Monday after Bear Stearns' collapse, the SEC proposed a new "naked short-selling anti-fraud rule" that is supposed to rein in manipulative trading by preventing short-sellers from misrepresenting to a broker that they have properly located stock to borrow to sell short.
The SEC contends in its most recent case that Thomas Badian's brother, Andreas Badian, an official at Rhino, directed three brokers who were affiliated with Refco Securities, (two of them were also affiliated with another brokerage that was named in the case) to sell short massive amounts of Sedona shares with "unbridled levels of aggression, " intending to "clobber" Sedona's stock price until it collapsed.
Within minutes I had learned that more than likely the news was false, allowing me to short sell for a very short-term trade.
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Is it time to load up on shares of this commodity-focused mutual fund company or to sell it short?
Now is a great time to sell stocks short in this segment.
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Investors can use (TBF) and (TBT) as vehicles to sell bonds short.
But the contract explicitly allowed the investors to sell Hayes short.
Some stocks are extremely hard to borrow or locate, however, tempting a trader to sell them short without locating them, creating what's called a naked short position.
It is prudent to wait for a market bounce to take advantage of higher prices to short sell or lower prices to buy inverse ETFs.
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Even if you disagree with my strategy you can still make money by using my concept of using GTC Limit Orders to buy weakness to a value level to become more long or less short, or to sell strength to a risky level to become less long or more short.
Express Scripts (ESRX) is a good candidate to short sell on any big bounce.
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Borrowers are then able to sell the shares short, or bet that they will decline in value.
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Those not able or inclined to short sell can still benefit from the inevitable change that is coming.
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Those wanting to sell the stock short are now paying around 10% annualised in order to do it.
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The time is coming close to short sell insurers driving a big part of their earnings from Medicare Advantage.
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You'd be a fool to sell this outfit short under existing rules, since you could get caught in a squeeze.
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