Wednesday, May 19, 2010

Germany bans some forms of short selling-BBC

5/19, "The German financial regulator has banned traders in the country from "naked" short-selling of euro-denominated government bonds and of shares in the country's 10 most important financial institutions.
  • Short-sellers usually borrow shares, sell them, then buy them back when the stock falls and return them to the lender, keeping the difference in price.

"Naked" short selling occurs when a trader sells a financial instrument that has not yet been borrowed."...

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