Short sale: angel or devil?
Ruiqiao Zhang
What the paper says
A short sale, as opposed to the conventional practice of long positions, is an abnormal creature for investment. It aims to profit from a decline in the market price and involves first the selling of non-owned financial instruments and, subsequently, the purchase of identical instruments to close the positions. The regulation and restriction of short sales has been a highly controversial topic. Questions arise: is the short sale a devil, an angel, or a hybrid? Is it reasonable to completely ban short sales or naked short sales? How can short sales be most effectively regulated? And how should the UK develop its own short sale regime after Brexit? Is the draft Short Selling Regulations 2024 (2024 Draft) an effective statutory instrument? This article attempts to provide regulatory responses to all these questions and provide an imminent examination of the 2024 Draft.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.50 × 0.4 = 0.20 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.