Short Selling Ban Drives Up Euro Market
Published / Last Updated on 11/08/2011
Short Selling Ban Drives Up Euro Market.
As a ban on short-selling of some financial shares takes effect, European stocks have risen. In an attempt to stabilise markets, France, Italy, Spain and Belgium have each banned short-selling of some stocks. The FTSE 100 and Paris's Cac indexes were 1% higher, while Frankfurt's Dax was up 2%.
Short-selling involves investors selling stocks they don’t own in the expectation they will fall in price before buying them back and pocketing the difference.