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Article: In depth: Industry Voice - Short selling: up on the downs.
- Article from:
- Pensions Week
- Article date:
- June 1, 2009
CopyrightCOPYRIGHT 2009 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: James Clunie - Investment director, Scottish Widows Investment Partnership
Short selling has been the subject of much press coverage in recent months, being cited as a key contributor to the downfall of the financial sector. Some short selling practices were even banned temporarily by the Financial Services Authority (FSA). But many defend the practice, claiming that it allows investors to profit in declining markets and actually helps make markets more efficient. So what exactly is short selling?
What is short selling?
Short selling is quite a simple concept. It is selling a share that you don't own in order to buy it back once it has ...