Good point Gatekeeper,
Imagine the effect on hedge funds will be extreme if they cant short sell. The entire model of a hedge fund is based on identifying high performing and low performing assets within a market. You then leverage to buy one and short sell the other, pocketing the difference in performance between the two assets.
They have basically made it impossible for hedge funds to operate. Imagine how much liquidity will dry up. They have massively inflated prices beyond what the market feels is fair value in an unprotected market.
Imagine the effect on hedge funds will be extreme if they cant short sell. The entire model of a hedge fund is based on identifying high performing and low performing assets within a market. You then leverage to buy one and short sell the other, pocketing the difference in performance between the two assets.
They have basically made it impossible for hedge funds to operate. Imagine how much liquidity will dry up. They have massively inflated prices beyond what the market feels is fair value in an unprotected market.
Comment