Regulatory debate continues on merits of short selling in turbulent markets
Short regulation
Since the beginning of the financial crisis, the practice of short-selling has come under heightened scrutiny with regulatory reactions differing across countries. Investors short stocks for many reasons: some bet on the fall of a share’s price due to over-valuation, others as part of convertible arbitrage or long/short strategies, while others use the method for hedging purposes.
The practice is contentious, however, and during sharp market declines, short-sellers are often cited as putting
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