Re: MORE ways to profit from falling stocks
I'm guessing I missed another thread. Why would you want to outlaw selling short? Say an American company has committed to purchasing an expensive piece of equipment from a Japanese manufacturer. This piece of machinery will be ready in 6 months and the agreed upon price is X yen. Well, if the yen's value inflates well above X over the next 6 months, the American company has taken a great risk by not shorting future yen. The same can be said for the Japnese firm should yen decline in value. Bottom line: You CAN'T outlaw short selling...
|