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<p>[QUOTE=&quot;desertgem, post: 2704823, member: 15199&quot;]My understanding is that currently ( although it may be changed soon by reducing regulations and restrictions for banks and monetary concerns) short selling is not specifically illegal in the US as some foreign countries, but it is a transitory state ( such as your obligation if you buy something with a credit card ( using their money) and the time you have to repay it. For stock transactions it is generally 3 business days. This time period falls on the brokers to be sure the stock is delivered and payment&nbsp; is received or paid ( depending on put or call ) to complete the transfer. </p><p><br /></p><p>After 2008, regulations were tightened to prevent float from affecting prices and availability of stock ( or commodity), as the fragility of major banks could cause greater collapse than had occurred. This tightening of regulations did not make the major houses happy, as it limited how much could be called incidental. They claimed then as now, the tightened money is bad for the growth of major industries and property developments. They wish the regulations be reduced or removed; then you will see &quot;interesting &quot; results. Anyway if &quot;naked shorts&quot; were used, they are not illegal until after Tuesday , by when they have to be replaced. And they probably will be as so many sold quickly when the price dived , that plenty of money was made by a transitory short. Unfortunately, the SEC has so few regulators and the financial climate may weaken to allow such to &quot;fail&quot; ( transaction not being completed) , that the financial firms might increase activities. For individual stock, options, futures investors, the money has to be there in some form before the trade can be made. But if you are doing massive trades, it does take some time to move shares/ cash. </p><p><br /></p><p>if you are a hoarder or stacker, nothing was affected except possibly an ego or 2 who thought it was the &quot;Beginning!!&quot;. If you bought or sold you would probably be affected.&nbsp; I would hope regulations would be tightened, but remember the average person in the US never makes &#039;naked shorts&#039;. IMO.[/QUOTE]</p><p><br /></p>

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