Quote:
Originally Posted by Snake Doctor
Well the one thing the uptick rule can do is prevent alot of short bets from becoming a self-fulfilling prophecy. Without it a bear raid can drive a perfectly healthy company into bankruptcy.
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Right but the uptick rule's been in effect since the 30's to 2007 and in all that time it hasn't really braked shorts in any fundamental way. The crash of 1987 still happened, people will still short stocks that they see have some real weakness. Bear raids of "perfectly healthy companies" are relatively rare considering the risk of shorting against the stock's fundamental strength.