If you invest in AIM please read on…
…a worthwhile cause ?
Campaign to make short-selling illegal
UPDATE - 3.339 voted to date
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It is estimated that over 90% of AIM stocks are INFECTED by short-sellers !
Many highly popular stocks are going down even on GOOD NEWS !
IF you were a short-seller, BLUFFING, (basically manipulating a shares’ price) about a company’s overvalued share price, you might not want to *draw attention to yourself since you could get accused of stock manipulation. So you would hope (OR PLAN FOR) others to get involved and to present SEEMINGLY GOOD REASONS to short the stock.
You would want to put AS MUCH FEAR INTO ‘LONGS’ as possible and would use high volume short trading as well as buying to drive the share price down as low as you can and as long as you can. You really want the longs to fold and to get out of the game. If you are consistently seeing sellers overwhelming buyers driving a share price down as a stock seems to be going up, I can assure you it’s probably shorts’ selling, since longs are totally motivated to sell their shares at the highest possible selling price. #
IT is easier to tank a share price, rather than make it go UP, by short-selling.
RUINOUS to genuine investors.
They may be able to buy in cheap BUT what’s the good, if the stock never really recovers?
AND when they have got you all hooked on the ‘lovely’ new all-time LOW…They’ll SHORT IT AGAIN !
ChalieHarper - posted on iii
IF a fund owns a large share holding in a firm and is long… whilst waiting for its end game to materialise, it loans out any number of its shares to a shorter…the shorter then manipulate the share price down making £X amount when short ended… the shorter then gives the loaned shares back and splits the proceeds 50/50.
They both make cash, probably during a time when not much is happening with the sp. IT’s a WIN-WIN for them but BAD news for the pi’s who as usual may have sold at a loss because the cash has to come from somewhere. #
The FCA codes of practice and market abuse
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