Difference between revisions of "Short sale"

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Short sellers are in the minority, making up on average less than 5 percent of positions on the [[New York Stock Exchange]].<ref>{{cite web|url=http://www.fsa.gov.uk/pages/Library/Communication/PR/2008/102.shtml|name="Short Selling: Nasty, Brutish and Short"|org=The Economist|date=July 31, 2008}}</ref>
Short sellers are in the minority, making up on average less than 5 percent of positions on the [[New York Stock Exchange]].<ref>{{cite web|url=http://www.fsa.gov.uk/pages/Library/Communication/PR/2008/102.shtml|name="Short Selling: Nasty, Brutish and Short"|org=The Economist|date=July 31, 2008}}</ref>


== Short Sales Prohibited in UK and US in 2008 ==
== Short Sales On Financial Companies Prohibited in UK and US in 2008 ==
On September 18, 2008, the board of the [[Financial Services Authority]] (FSA) announced it would introduce new provisions to its Code of Market Conduct to prohibit the active creation or increase of net [[short position]]s in publicly quoted financial companies. The goal was to protect the fundamental integrity and quality of markets during disorderly market conditions. The new provisions were implemented at midnight.<ref>{{cite web|url=http://www.economist.com/displaystory.cfm?story_id=11591349|name=FSA Statement on Short Positions in Financial Stocks|org=FSA|date=September 19, 2008}}</ref>  
On September 18, 2008, the board of the [[Financial Services Authority]] (FSA) announced it would introduce new provisions to its Code of Market Conduct to prohibit the active creation or increase of net [[short position]]s in publicly quoted financial companies. The goal was to protect the fundamental integrity and quality of markets during disorderly market conditions. The new provisions were implemented at midnight.<ref>{{cite web|url=http://www.economist.com/displaystory.cfm?story_id=11591349|name=FSA Statement on Short Positions in Financial Stocks|org=FSA|date=September 19, 2008}}</ref>  


One day later, the U.S. Securities and Exchange Commission said it would temporarily ban investors from short selling 799 financial companies. The temporary ban, aimed at helping restore falling stock prices that shattered confidence in the financial markets, took effect immediately.  
One day later, the [[U.S. Securities and Exchange Commission]] said it would temporarily ban investors from short selling 799 financial companies. The temporary ban, aimed at helping restore falling stock prices that shattered confidence in the financial markets, took effect immediately.<ref>{{cite web|url=http://money.cnn.com/2008/09/19/news/economy/sec_short_selling/?postversion=2008091907|name=SEC bans short-selling|org=CNNMoney.com|date=September 19, 2008}}</ref>   




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