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spokeshave

03/10/09 3:57 PM

#77312 RE: mas #77310

How can you logically sell something you never bought?

Anyone who sells a house with a mortgage does largely the same thing. You sell a house that you don't own, then take the proceeds of the sale to pay off the mortgage, and pocket the difference.

Shorts keep the market honest, as long as the shorts are honest...
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mmoy

03/10/09 4:15 PM

#77314 RE: mas #77310

Short-selling serves a valuable purpose in markets as shorts have to eventually buy too. They're just doing it in a different order.

The uptick rule is no big deal. There are so many ways to get around it. If you want to short the QQQQs, you can just buy the QIDs for a double-shot. If you want to short something and get around the uptick-rule, just buy the security in one account and short it in another creating a neutral position. When you want to short it, just sell the long position.