Porsche crashes into controversy in the ultimate 'short squeeze'

[DiscoStu]

Fine, sell, but if you bought shares last week you should expect to pay 99% capital gains tax. If you had shares for long term then tax should be low.

Hedge funds don't provide liquidity - market makers should be doing that and hedge funds only appeared recently in big numbers, exchanges did pretty well without hedge funds being around thank you very much.

So, in short - hedge funds can take their liquidity and fook off to try this trick in China - once they try it once there maybe they'd be taught a lesson they'd never forget.

You're such a numpty...

[AtW]

You're such a numpty...

The numpties are those who put their money into hedge funds that are losing big time now that the tulip hit the fan.

[DiscoStu]

The numpties are those who put their money into hedge funds that are losing big time now that the tulip hit the fan.

If you honestly think a 99% CGT tax on any short term trades will achieve anything except completely paralyse the market you're sadly misguided...

[AtW]

If you honestly think a 99% CGT tax on any short term trades will achieve anything except completely paralyse the market you're sadly misguided...

Shares became chips in a casino, not long term investment instruments - maybe this whole computerised quick-buy-sell stock exchange is the undoing of it, far too many people can trade and far too much effort wasted on these things.

We depend too much on too big companies anyway - this is very bad, so maybe curbing these stock exchange gambling sessions would actually help shift the power back to companies that never even think of floating on exchange.

One thing for sure however - shorting activities should be banned and if some companies primarily do just that, then they should be closed down.

[zathras]

Basically this means that hedge funds were shorting effectively non-existant stock (article suggests Porsche allowed banks to let their stock to be borrowed supposedly luring hedge funds into trap)

In the US you would have to file notice when your holding goes above 5% (IIRC). This is true for most countries but crucially not Germany.

[AtW]

In the US you would have to file notice when your holding goes above 5% (IIRC). This is true for most countries but crucially not Germany.

What if you borrow shares, maybe it's a way around ownership notification laws? Hedge funds (taken together when they attack in a pack) are known to short a lot of shares, over 20% overall for whole company (for a number of hedge funds, not idea if linked) was seen this year.

VWs case shows that (in my view) they effectively did naked short selling without bothering to borrow shares, basically they got fook all - handful of high leveraged money to play with and they just game the system, if they were doing this in a casino they would get banned very quickly and in fact I'd say they'd be lucky to get away without broken bones, but they do it on a mass scale on stock market and usually get away with it.

[BrilloPad]

What if you borrow shares, maybe it's a way around ownership notification laws? Hedge funds (taken together when they attack in a pack) are known to short a lot of shares, over 20% overall for whole company (for a number of hedge funds, not idea if linked) was seen this year.

VWs case shows that (in my view) they effectively did naked short selling without bothering to borrow shares, basically they got fook all - handful of high leveraged money to play with and they just game the system, if they were doing this in a casino they would get banned very quickly and in fact I'd say they'd be lucky to get away without broken bones, but they do it on a mass scale on stock market and usually get away with it.

So you think a casino is okay but stock market is not?

hmmmmmmmmm

[AtW]

So you think a casino is okay but stock market is not?

It's not okay when one turns into the other.

[BrilloPad]

It's not okay when one turns into the other.

question for you(not that you are good are answering qus).

What is stock market Vega risk
1. sensitivity to volatility
2. the Las VEgas equivalent
3. some sort of vague risk

???

[Churchill]

question for you(not that you are good are answering qus).

What is stock market Vega risk
1. sensitivity to volatility
2. the Las VEgas equivalent
3. some sort of vague risk

???

I haven't got the foggiest.