sec stock trading rules
sec stock trading rules
Do you prefer being in a Vanguard index fund or an Exchange Traded Fund (ETF) market duirng a major sale-off?
If many investors to redeem / sell its shares at the same time, Vanguard will be forced to sell stocks quickly, which can be detrimental to the fund. Fortunately, people do not allowed short open-ended mutual funds. ETFs concern is different. Nobody is forced to sell the underlying shares. However, people can ETF short hoping to fall further to make a huge profit quickly. Worse, the SEC has not established an "up-tick rule" for ETFs. Therefore, people can short an ETF even in a down tick, which can greatly accelerate the market collapse. How can arbitrage keeps the price in line with the NAV during a major selling-off, since a large exchange rate is a complicated process slow? If you work with the Security Exchange Commission (SEC), what are you doing about it in terms of improving the regulation of ETFs to reduce the accident risk of the next big market?
I do not work with the SEC. Prefer ETF be myself. At least if the market is collapsing to 89 for fashion that can be downloaded at the click of a mouse, in the event of brokerage on my website is online more overwhelmed at this time. With mutual funds, you can not do CRA P. Just sit and watch fall.
