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Petition Government to ban short selling of UK listed company stocks

Short selling of stocks impacts everyone's pensions, it also impacts anyone's other investments in UK listed companies. Suppose your pension advisor invested £100,000 of your pension pot into RBS shares just prior to a gang of stock short sellers attacking RBS stock, within a few days the price of the stock has halved and your pension pot is now worth £50,000 less. A typical scenario that happens to many stocks every week. The majority of people don't realise that short selling has been impacting their pensions regularly. Short selling should be illegal. Short selling is when someone, or mostly an organised gang, borrow shares that they then sell into the stock market, forcing the value of a company down. I can't short sell three bedroom houses or BMW 7 series cars until they reach a price that I am willing to pay for them, in the same sense nobody should be allowed to short sell stock of a company, as the stock represents part of that company. Many UK companies have suffered extremely from the gangs of shorters, many going into administration because the value of the company was forced down so low that the company could not raise enough cash to support its operations, surely forcing a company into administration in this way should be illegal. Shorters are making a fortune by ruining British small companies, again it should be illegal. The UK stock market is a farce so long as people are able to sell shares that they don't even own. Protect your pension and your investments and vote for a ban on short selling of UK listed stocks.

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    Anonymous shared this idea  ·   ·  Admin →

    35 comments

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      • Anonymous commented  · 

        I will sign any petition on this subject as I have done in the past. The problem is that these shorting entities including some v large hedge funds who donate to our awful political parties. The FCA gives no indication that it is doing anything and hides behind a non committal standard reply when complained to. Lots of good companies (Opay, Blinxks, Globbo Quindell etc etc ) are being attacked regularly in conjunction with spurious and untrue publications.Some shareholders have formed action groups (Quindell etc) to try and get something done through both the political side and through the so called regulator. Unless we get large numbers of private investors involved in getting this abuse out into the public domain and letting people know that it is their pensions going down the pan then nothing will happen and this corrupt gravy train will continue! Remember there is an election looming and the glitteratii will want to keep their snouts in the trough ! 38 Degrees are a great bunch, lets go for it !

      • Jaque Blaque commented  · 

        A disgraceful practice which ought to be punishable by a custodial sentance....in every case!
        Plus, the BoD of the FSA (or whatever they call themselves now) should be sacked and incarserated without appeal, for knowingly allowing it to happen.

      • And just like the Foreign Exchange of currencies since the eighties, in particular, the game on these pretend city institutions of goo repute are Casinos. How dare I say that? With only 2%, or thereabouts of trades being for actual goods and the other 98% are bets on money changing value, which is likely as someone just pushed money in one direction.

        Similarly, as the initial author writes for this Petition to our Government to ban short selling of UK listed company stocks, it is simply gambling for the rich, or at least the well heeled. I spent the eighties selling software to all the city institutions and it is where my three pensions paid out £2,650 per annum instead of a target of £15K to £30K (Even if it hit £10K would have been tolerable). I found out to late the pension companies had legally parked funds for years with no management and yet were allowed to collect fees, regardless. Furthermore, I had no absolute legal rights to my pension pots until I actually held the amount paid to me monthly. All of these schemes are not for the good of the investor but for the good of the City of London and its members, which is not most of us.

      • Allan Lewis commented  · 

        This "shorting" will probably continue as many of our "elected" probably profit from this practice as well so there is little chance of it being made illegal.

      • Anonymous commented  · 

        That epetition is not very well worded and not very detailed, for a start it does not cover the impact on everyones pensions, it also misses the many other impacts of short selling that are listed on this page and factors that make a ban more likely. If that epetition reaches the treasury, when they read it they are more likely to say that bulletin boards are banned than they are to ban shorting. If all the information on this page is put to the treasury they would be more likely to ban shorting than to think for a second about bulletin boards.

      • Anonymous commented  · 

        How can you sell something that you don't own it's a no brainier really.
        The FSA are a shambles in my opinion and there probably in the pockets of
        These people,corruption every where,just have to look at insider trading it goes on still every day but not a lot is done about it.just some poor trader now and again gets prison to save the necks of others....we know that some labour government higher archly were at it but where let of the hook....

      • Anonymous commented  · 

        A pension is not something that should evoke thoughts of slippers, walking stick and holidays to Blackpool, a pension is a lifetime investment to ensure we have enough money to live on when we no longer have to work. Short selling destroys part that lifetime investment and means we all may struggle when our final pension pay out is determined. Ask any pensioner how much £10 or £20 per week less would affect their life, you will find it makes a big difference to most pensioners, some already have to turn heating off because it costs so much to run, £10 or £20 a week less would mean a lot more of us yet to be pensioners having to turn the heating off. Short selling could make a lot more difference to our pensions than £20 a week. Stop the short selling, or it will bite you later.

      • Bob Warriner commented  · 

        Shorting stock destroys confidence in the market place.
        I'm surprised it was ever allowed in the first place.

        Bob.

      • Anonymous commented  · 

        Yes a good idea the City of London is full of very Dodgy Brokers Traders etc

      • Susan Meyer commented  · 

        Let's hope this practice of short selling can be stopped.

      • Allan Lewis commented  · 

        It is just a matter of time before the FSA will be held more accountable for their actions. In the same way as the banks were during and in the aftermath of the financial crisis. They should heed this groundswell of opinion now and get their act together before they are forced to. They should have got the hint when the Gvt started revisision of Pension law recently.

      • Jaque Blaque commented  · 

        The FSA/FCA is a toothless dog, run by a bunch of half wits, who have'nt an ounce of guts, nor conscience between them. Great Britian has been shackled by 'the upper crust' for hundreds of years, whose motto is, and always has been 'I'm alright Jack' How can we expect a fair deal from a bunch of idle bar men, who fill their own pockets first, and are frightened to 'rock the boat' for fear of expulsion from the 'ol boys club. Don't expect anything to change......unless it was an election winner!!

      • Anonymous commented  · 

        Some people on Blinkx forums have noted that Blackrock lost £30m in one day by allowing shorting of a stock they held over 11% of. The thing is, the price continued to drop after that first day, putting the total loss for Blackrock nearer £60m. How much was lost by pension funds that held Blinkx stock? Massive amounts. This demonstrates the conflict of interest that can and does happen when institutions are allowed to lend their and their clients shares to gangs of shorters that then hit the stock with a bear raid. My stock is owned by me, I do not want my stock loaned to shorters so that they can reduce my wealth.

      • Anonymous commented  · 

        Add "cash for difference" (CFD) trading too. Our stock markets should be a place for investing, not gambling using manipulative techniques such as "high frequency trading".

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