Reality check for naked short-sellers
This practice has been tolerated for too long.
Thu, Sep 25, 2008
my paper
I APPLAUD the Singapore Exchange's latest ruling on the naked short-selling of shares.
| Related link: » Unknown short-seller hit by $1m loss |
This practice has been tolerated for too long, and the restriction, which is long overdue, will help to weed out unhealthy speculation.
Naked short-selling occurs when one sells stock that one does not own, in the hope of pocketing a profit when the stock is bought back after its price has fallen.
In the real world, you and I do not sell a car nor a house that we do not own, do we?
For those caught with their pants down, I hope this will serve as a reality check.
Dr Huang Shoou Chyuan
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