Brokers have billions of credit available but telling you they cannot give credit

duke wrote:I guess you don't need billions or millions. You can push up the share market merely by buying BUKI 100, CARS 100, WAPO 100 everyday. Foolish locals will follow. Didn't that happen few months back? This can happen again. There was a press release today I think of CARS published after 1 month of release of the results. I wonder why? Was it because the letter got delayed because of the postal strike?

insidertrader wrote:

chamith wrote:Question SEC should look into is why this available credit has not been used. The answer is foced selling. Even if this 2 billion credit is used, this has to be settled in t+5, therefore it's not surprising that there are such unused credit. Settling of the credit is automated. Within 5 days there will be 0 credit utilized if all credit were used in 1 day.

I believe where we went wrong is credit settling. Either it has to be t+0 (have to have money in the ac to buy) or t+n. Where n should be a much long period. Say about 10 or 20. This long time period would give more time for the creditor to sell voluntarily. As I can see we have only these 2 options to mitigate the force selling making the market drive down.

Wrong. If the brokers are force selling after T+5 days saying they have to because SEC told them to then your trusted friendly broker is lying.

Brokers are allowed give credit over T+3 days

Therefore, the SEC hereby directs the Colombo Stock Exchange (CSE) as follows:

1. To permit Licensed Stock Brokers to extend credit to investors over T+3 days based on the computation of Liquid Assets less Obligations, maintaining a leverage at zero level as set out in Annexure 1 hereto;

http://www.lankabusinessonline.com/fullstory.php?nid=146837552

Rajaraam wrote:Some ppl's views here encourage us for pannic selling and small investors who read their posts think that they would have not taken a decision to invest in stock market. Those ppl are trying to exit as early as posible( even some of my very good freinds) If these guys continue posting like this ASI would come down to around 3500-4000 level within a month coz said posts discourage new ppl to enter. Anyone who reads this forum posts these days will not enter this market and ppl who are already in business would try to exit soon. ( including myself.)

Rapaport wrote:

Rajaraam wrote:Some ppl's views here encourage us for pannic selling and small investors who read their posts think that they would have not taken a decision to invest in stock market. Those ppl are trying to exit as early as posible( even some of my very good freinds) If these guys continue posting like this ASI would come down to around 3500-4000 level within a month coz said posts discourage new ppl to enter. Anyone who reads this forum posts these days will not enter this market and ppl who are already in business would try to exit soon. ( including myself.)

I feel you should invest with your own instinct, knowledge, money and will and not defer your strategy because of the posts on this forum. This forum is to interact with other investors and share knowledge. You must understand that all that is posted here is not useful and you must only grab the useful things.

Cheers!

Rajaraam wrote:Some ppl's views here encourage us for pannic selling and small investors who read their posts think that they would have not taken a decision to invest in stock market. Those ppl are trying to exit as early as posible( even some of my very good freinds) If these guys continue posting like this ASI would come down to around 3500-4000 level within a month coz said posts discourage new ppl to enter. Anyone who reads this forum posts these days will not enter this market and ppl who are already in business would try to exit soon. ( including myself.)