November 03, 2006

Long and short position abuses frequently come hand in hand

Sir, in your “Do not sell us short”, November 3, you correctly argue that we should not identify the abuse of false bad news with the mechanism of the short sale. Usually we do not react to it the same but false good news that inflate the value of a stock is exactly as much an abuse than bad news that deflates it and often both long and short positions abuses come hand in hand.