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I know of at least one major high-end cosmetic & fashion brand that actively limits stock of its most sought after product to even their best customers.
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Instead of allowing 95% of the risk of day-to-day price changes to reside in the stock portion of the portfolio, for example, Salient limits stocks to 20% or so and allocates equal slices of the risk budget to other assets.
That has helped to limit stock price declines this year to 1percentt at Bear Stearns and 19percentt at Lehman, he said.
To do that, the company said it would freeze salaries for senior executives, reduce their annual bonuses, limit stock awards and stop granting stock options to them.
The group also said it would limit stock holdings by its employees and executives in medical product companies that hold Novation contracts.
On a near term view, this news could limit stock price performance as it will cap 2016 estimated earnings per share momentum.
The initial decline in U.S. output in the summer of 1929 is widely believed to have stemmed from tight U.S. monetary policy aimed at limiting stock market speculation.
Having been accused of frenzy tactics in the past – limiting stock supply of a well received item to make it sell out and increase demand – this time M&S is aiming to satisfy all of its customers who want in.
Last Sunday, while being interviewed on "Meet the Press," Senator John McCain, the Arizona Republican who has long advocated limiting stock options, complained loudly that "it's a bipartisan fix that's in".
But it is the FSA's threat to "take further measures" if need be by, say, limiting stock lending during rights issues, that has really spooked short-sellers.The regulator says that "market abuse" may have driven the share prices of banks near or below the offer price for new shares, putting pressure on the underwriters of the rights issues to buy the new stock.
Video: Oil Jumps, Limiting Stock Gains.
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