Thought for the Night: Lost in the chaos brought about by Glendas visit was the PSEs announcement last week that the Insurance Commission would allow insurance firms (among others) to lend their securities to investors for a fee. Of course, the usual reason an entity would borrow shares would be if they intended to short-sell an issue. (Short-selling means you sell something you do not really own with the expectation of buying it back at lower prices.) Some thoughts: 1. Short-selling is an integral part of a mature market and it is good that we are heading in that direction. 2. Given the relatively small number of shares that can be lent, the current system would prejudice smaller investors. Specifically, large accounts will be able to borrow these shares while retail investors will find it difficult. 3. Since a broker is required to indicate short-sales, PSE should make information on short positions easily available. Especially if managed funds start shorting in the future. Parang if they indicate what their Top 10 Long positions are, then they should also indicate what their Top 10 Short positions are. What about you? What do you guys think? In Other News: Anne Curtis tagged as one of the 50 Smartest Stars on Twitter by Time Magazine.
Posted on: Sat, 19 Jul 2014 12:16:20 +0000