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Uptick Rule

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winston53660

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CNBC just reported Barney Frank said the uptick rule should be back within a month.
 
Harry Guerrilla said:
:confused:
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I was razzing you. you forgot the "t" in "It" when you said "
"I doesn't seem to make any sense."




How is short selling artificial?
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When it turns into a bubble like situation and trades are forcing the market down. The same thing can also happen in reverse and force the market higher on a bubble.
 
winston53660 said:
I was razzing you. you forgot the "t" in "It" when you said "
"I doesn't seem to make any sense."
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:doh :lol: I can haz cheezberger?





winston53660 said:
When it turns into a bubble like situation and trades are forcing the market down. The same thing can also happen in reverse and force the market higher on a bubble.
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They should do the same for buy and selling then.

That is really retarded.
 
I find this to be an extremely necessary tool to keep the stock market from free falls
 
Harry Guerrilla said:
:doh :lol: I can haz cheezberger?
They should do the same for buy and selling then.
That is really retarded.
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Really?

Aligning your incentives with your goals = success.
Aligning incentives with the things you need to avoid = failure.

If you want market failure to be incentivized, by all means you can support that position, but it seems that incentivizing a growing market (or sustained market) is obviously what is "good".
 
Mach said:
Really?

Aligning your incentives with your goals = success.
Aligning incentives with the things you need to avoid = failure.

If you want market failure to be incentivized, by all means you can support that position, but it seems that incentivizing a growing market (or sustained market) is obviously what is "good".
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If they are trying to prevent over selling why would they not prevent over buying that artificially drives the price up?

It makes no sense. Over selling and buying are part of the market equilibrium.

You can't regulate to nonexistence.
 
Harry Guerrilla said:
:doh :lol: I can haz cheezberger?







They should do the same for buy and selling then.

That is really retarded.
Click to expand...


There is a rule on day traders b uying and selling. Day traders have to maintan 25 k in their account.
 
The so-called "up-tick" rule is a depression-era anachronism, originally put in place to "protect" the market from bear raids from the likes of such Wall St. luminaries as Daniel Drew, Jesse Livermore, and Joseph Kennedy, among others. It was put in place during a time when market regulation/supervision was virtually non-existent, credit for market purposes was cheap and abundant and almost totally unregulated (no Reg U, T, etc). It was, thus, quite easy for individuals or groups to manipulate stock prices either from the long side or the short side. The public was all too often caught in the middle and made to pay unjustly.

Today, market and credit regulations and supervision have significantly reduced, but have not totally eliminated the ability of any group to illegally influence the market. The pools of capital are now just so huge (though not as large as they were 18 months ago!) that a resort to illegal methods is rarely needed-though many boiler-room operations persist with pump-n-dump operations. Even so, the up-tick rule has been shown by a number of academic studies to be counter-productive in today's market place.

One form of short-selling that has retained it's particularly abusive character is known as "naked short-selling." While regulatory practices and controls are in place, for some unknown reason, the SEC et al have proven ineffective at enforcing these rules. Naked short-selling would not be curbed in any significant way by re-imposition of the up-tic rule, though advocates of bringing back the up-tic would have you believe otherwise.

In sum, the up-tic rule is wanted by those who would be financially advantaged by its re-imposition, even though the abolition of the rule clearly contributes to market efficiency. More than the up-tick rule, the market needs to see enforcement of existing short-selling rules/regs.
 
winston53660 said:
CNBC just reported Barney Frank said the uptick rule should be back within a month.
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Barney Frank is a moron and all this to do about the uptick rule is much ado about nothing in my opinion. Getting rid of the uptick rule didn't cause the markets to nose dive and reinstating it won't have a huge effect on recovery.
 
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talloulou said:
Barney Frank is a moron and all this to do about the uptick rule is much ado about nothing in my opinion. Getting rid of the uptick rule didn't cause the markets to nose dive and reinstating it won't have a huge effect on recovery.
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It would have a minimal effect on driving the market down. If Barney Frank said it or Dick Cheney said it it really does not matter.
 
winston53660 said:
It would have a minimal effect on driving the market down. If Barney Frank said it or Dick Cheney said it it really does not matter.
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I'm just annoyed that they are running around over hyping the whole uptick rule issue. They're gonna reinstate it, pretend they've done something overwhelmingly profound, and then get down on their knees and pray it has some psychological effect that makes a smidgen of a difference on the market so they can smugly pat themselves on the back.

Barney Frank is an asshole. The only person who annoys me more is Maxine Walters. Where the hell did she come from and how the hell long is she gonna be around???
 
talloulou said:
I'm just annoyed that they are running around over hyping the whole uptick rule issue. They're gonna reinstate it, pretend they've done something overwhelmingly profound, and then get down on their knees and pray it has some psychological effect that makes a smidgen of a difference on the market so they can smugly pat themselves on the back.

Barney Frank is an asshole. The only person who annoys me more is Maxine Walters. Where the hell did she come from and how the hell long is she gonna be around???
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Not only that but they are both some of the most corrupt ass wipes in the whole of the U.S. congress.

I was going to post this article in breaking news but I think its lost on most people.

Waters Helped Bank Whose Stock She Once Owned - WSJ.com
 
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