Banning naked short-selling, which influences prices, is one way to avoid price fluctuation. Another is to ban price-influencing long-buying, which is also taking a position on the market. It remains a constant surprise to me that nobody has genuinely tried to make this illegal.
I applaud the SEC's courageous move to ban short selling. Isn't that brilliant? I wonder why they didn't think of that during the Great Depression.
However, I feel that this valiant effort does not go far enough.
All selling of stocks should be banned. Once you buy a stock, you have to hold it forever.
Sure, this might make the market a little less liquid. But once stock prices can only go up, we'll all be rich!
Or maybe we should just try something simpler: pass a law making it illegal for stock prices to go down.