RBIZ- U S Government should BAN "SHORT SELLING" li
Post# of 962
SHORT SELLING.....
Business
Germany calls for Europe-wide short-selling ban
The trading strategy known as short-selling came into sharp focus Friday as four eurozone nations placed short-term bans on the practice. EU economic heavyweight Germany has called for its complete prohibition.
A trader
Germany wants to see short-selling gone for good
Germany called for a Europe-wide ban on short-selling Friday after four EU partners took the step of prohibiting the trading strategy in a bid to contain the eurozone debt crisis and calm jittery markets.
"The German government has been monitoring the problem of short-selling for some time and thus banned naked short-selling in Germany last year," said a spokesman for the Finance Ministry. "In addition, we are calling for a broad short-selling ban in Europe."
Short-selling is the practice of borrowing shares you do not own and selling them when their price is high on the assumption that the share value will drop. The same quantity of shares is then repurchased at a lower price and the difference is banked.
This form of profiteering on market losses can give the impression of a mass sell-off of shares, hence driving down their worth and fuelling market instability. France, Italy, Belgium and Spain all put a hold on the trading method Friday as it pertains to stocks in a collection of banks and large insurers.
'Abusive' short selling
Shares in banks and other large institutions, notably insurers, have fluctuated wildly in recent weeks on the back of the eurozone debt crisis emanating from countries such as Greece, Italy, Portugal and Ireland. It's believed short-selling may have added to instability.
The European Securities and Markets Authority (ESMA) said restricting the "abusive use of short-selling" was "an effective tool to calm the market."
www.dw.com/en/germany-calls-for-europe...a-15312312