Sep 26 2008

Damage done without any shorts at work

Published by at 1:43 pm under Market Analysis

For those who might be thinking that without the shorting stocks are going to be less open to major rapid declines, I present today’s chart for National City (NCC). Rumors that the FDIC was going to seize the bank knocked it down about 50% today, and of course NCC is on the no-short list, so it can’t have been short sellers in the stock doing the damage.

It’s going to be interesting to see what the after the fact research by the academic sorts has to say about the impact of the no-short rule in regards to volume and volatility.

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