“They’re basically going to hold the brokerage firms accountable,” Kerry Knoll, chairman of Generation Mining (TSX: GENM) said of the proposed amendments by Canadian Investment Regulatory Organization (CIRO).
“People can’t just call up and short and then go looking for the stock,” he said on Monday at PDAC, which runs from March 3-6 in Toronto.
“With juniors, you frequently can’t find the stock to borrow. I have never shorted one, but I’ve tried many times. And when I have tried, I call around and see if anybody can borrow the stock and it’s always ‘no.’”
Shorting is when traders borrow a security to sell into the market, hoping to buy it back at a lower price and pocket the profit before returning the stock to its owner. It’s basically a bet that a stock’s price will go down. Junior mining stocks have been targeted by short-sellers because the market as a whole has been trending downward. However,…
