Korea has the right idea. imposing a ban on short-selling until the end of June 2024. Short-selling is when a trader sells borrowed shares to buy back at a lower price and pocket the difference.The ban will restrict short selling of all Kospi, Kosdaq and Konex listed stocks. The curbs were lifted in May 2021 for trades involving the shares of large-cap companies, mostly included in the Kospi.“We seek to fundamentally resolve the ‘tilted playing field’ between organizations and individuals,” Financial Services Commission Chairman Kim Joo-hyun said in a press release.The Kospi jumped 3.93%, while the Kosdaq surged 5.88%.This comes after a report in mid-October said South Korea’s stock market watchdog found two Hong Kong-based investment banks had engaged in naked short-selling, that was expected to have resulted in record fines. Naked short selling is when an investor shorts a stock or other security without borrowing first.
AXE Price at posting:
38.5¢ Sentiment: Buy Disclosure: Held
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