Originally Posted by pb4uski
I don't have an issue with the sale of a legal right that is an intangible asset... like a contractual right that you own or even plants in the ground that you own... but selling a stock that you don't own or have any legal rights to doesn't fit there either.
I was going to mention grain futures (selling plants in the ground), a product (the resulting grain) you don't own (yet).
But in any case, short sellers do need to cover that sale with the amount required to buy it back. And short sellers buy back on dips, which could actually help to stabilize markets.
I dunno, but I kinda think making changes to the market in the middle of things would be disruptive. If short selling needs regulatory changes, then maybe wait until the dust settles?