Short selling and the development of anti-shorting laws in the UK

The practice of short selling stocks can be traced back to the seventeenth century and has continued to thrive to this day. To short sell, one has to borrow the stock, sell it, and subsequently hope to buy it back at a lower price. Thus, the reason for shorting is to make a profit on the downfall wh...

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Main Author:	Mohamad, Azhar
Format:	Article
Language:	English English
Published:	Emerald 2016
Subjects:	K Law (General)
Online Access:	http://irep.iium.edu.my/50035/ http://irep.iium.edu.my/50035/ http://irep.iium.edu.my/50035/ http://irep.iium.edu.my/50035/1/JFRC-05-2014-0025.pdf http://irep.iium.edu.my/50035/4/50035_Short%20selling_WOS_SCOPUS.pdf

id	iium-50035
recordtype	eprints
spelling	iium-500352017-01-31T15:49:17Z http://irep.iium.edu.my/50035/ Short selling and the development of anti-shorting laws in the UK Mohamad, Azhar K Law (General) The practice of short selling stocks can be traced back to the seventeenth century and has continued to thrive to this day. To short sell, one has to borrow the stock, sell it, and subsequently hope to buy it back at a lower price. Thus, the reason for shorting is to make a profit on the downfall when investors hold a bearish view on the stock. Too often, society associates shorting activity with market crashes and treats short sellers with hostility. This paper reviews the history of short selling and the development of anti-shorting laws, particularly with regard to the UK market. It also analyses the distinct literature on short selling. The paper argues that the development of anti-shorting laws shows that regulators are instituting a policy unfavourable to short sellers. The opposers of short selling may be seen as lacking ideas and having the tendency to ban anything they do not like. Short sellers, on the other hand, may be seen as the elite bodyguards of the financial market whose job it is to get rid of overvalued stocks, and ultimately keep the market safe and efficient. For this reason, short sellers deserve our praise and thanks, not our hatred and opprobrium. Emerald 2016-01 Article PeerReviewed application/pdf en http://irep.iium.edu.my/50035/1/JFRC-05-2014-0025.pdf application/pdf en http://irep.iium.edu.my/50035/4/50035_Short%20selling_WOS_SCOPUS.pdf Mohamad, Azhar (2016) Short selling and the development of anti-shorting laws in the UK. Journal of Financial Regulation and Compliance, 24 (1). pp. 9-23. ISSN 1358-1988 http://www.emeraldinsight.com/doi/full/10.1108/JFRC-05-2014-0025 http://dx.doi.org/10.1108/JFRC-05-2014-0025
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	K Law (General)
spellingShingle	K Law (General) Mohamad, Azhar Short selling and the development of anti-shorting laws in the UK
description	The practice of short selling stocks can be traced back to the seventeenth century and has continued to thrive to this day. To short sell, one has to borrow the stock, sell it, and subsequently hope to buy it back at a lower price. Thus, the reason for shorting is to make a profit on the downfall when investors hold a bearish view on the stock. Too often, society associates shorting activity with market crashes and treats short sellers with hostility. This paper reviews the history of short selling and the development of anti-shorting laws, particularly with regard to the UK market. It also analyses the distinct literature on short selling. The paper argues that the development of anti-shorting laws shows that regulators are instituting a policy unfavourable to short sellers. The opposers of short selling may be seen as lacking ideas and having the tendency to ban anything they do not like. Short sellers, on the other hand, may be seen as the elite bodyguards of the financial market whose job it is to get rid of overvalued stocks, and ultimately keep the market safe and efficient. For this reason, short sellers deserve our praise and thanks, not our hatred and opprobrium.
format	Article
author	Mohamad, Azhar
author_facet	Mohamad, Azhar
author_sort	Mohamad, Azhar
title	Short selling and the development of anti-shorting laws in the UK
title_short	Short selling and the development of anti-shorting laws in the UK
title_full	Short selling and the development of anti-shorting laws in the UK
title_fullStr	Short selling and the development of anti-shorting laws in the UK
title_full_unstemmed	Short selling and the development of anti-shorting laws in the UK
title_sort	short selling and the development of anti-shorting laws in the uk
publisher	Emerald
publishDate	2016
url	http://irep.iium.edu.my/50035/ http://irep.iium.edu.my/50035/ http://irep.iium.edu.my/50035/ http://irep.iium.edu.my/50035/1/JFRC-05-2014-0025.pdf http://irep.iium.edu.my/50035/4/50035_Short%20selling_WOS_SCOPUS.pdf
first_indexed	2023-09-18T21:10:43Z
last_indexed	2023-09-18T21:10:43Z
_version_	1777411233916387328

Short selling and the development of anti-shorting laws in the UK

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