re: #431 Bagua

shorts are not the problem. it’s the collusion of the shorts that is the problem.

Here is the solution. First, no one can borrow stock to short that is more than the outstanding float. Second, the uptick rule is a good thing, bring it back. Third, make stocks trade in .05 increments to foster arbitrage between markets. You will also have more volume at each price (more liquidity) Fourth, ban proprietary trading in the investment banks, and force all orders to go to some type of regulated exchange. Sunshine is good. Fifth, if you prop trade, you can’t be public. You have to be closely held. Partners watch other partners risk taking closer than shareholders do. Sixth, The default when you buy a stock is that it shouldn’t be allowed to be borrowed. Make the shareholder check a box to allow it to be borrowed. Less stock available means less shorting and less probability of a colluded attack.

Again, I am in the industry. I have seen where bodies are buried.