Cryptocurrency Q&A
Why is shorting a stock illegal?
Why is shorting a stock illegal?
CryptoAlly
Tue Nov 26 2024
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7 answers
1334
I heard that shorting a stock is illegal and I want to know why. Is it because it manipulates the market or causes unfair losses to other investors? What are the specific reasons that make this practice unlawful?
7 answers
BlockchainWizardGuard
Thu Nov 28 2024
During a bear raid, traders short a stock, meaning they borrow shares and sell them in anticipation of a price drop.
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HanbokGlamourQueen
Thu Nov 28 2024
After initiating the short sale, these traders spread negative information about the stock.
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CryptoTitanGuard
Thu Nov 28 2024
Market manipulation is a serious issue that requires stringent measures to prevent.
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KpopStarletShineBrightness
Thu Nov 28 2024
Short selling has been identified as a tool used in various market manipulation schemes.
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Alessandro
Thu Nov 28 2024
The aim is to create a panic among investors, causing them to sell their shares, thereby driving the stock price down.
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