SHORT-SELLING OF EQUITIES. ADVANTAGES, DISADVANTAGES AND USING OF THIS INVESTMENT TECHNIQUE ON THE WARSAW STOCK EXCHANGE (Krótka sprzedaz akcji. Wady i zalety oraz wykorzystanie tej techniki na Gieldzie Papierów Wartosciowych w Warszawie)

• Authors: Klosiewicz Pawel , Sieradzki Rafal
• Languages of publication: PL

Abstracts

EN

The main aim of this article is to present short-selling as an investment technique, that enables investors to make profits on drops of prices of securities. Two types of short-selling were characterized: covered short-selling and naked short-selling. The article presents advantages of this investment technique, not only for investors, but also for functioning of the equity and derivatives markets. Disadvantages of short-selling were also presented including, among other things, market abuse and short squeeze. It was noted that the negative impact of short-selling may be partially limited by applying proper regulations (like the up-tick rule). Problems concerning concluding short-selling transactions on the Warsaw Stock Exchange were also analysed, emphasizing the role of legal factors in development of this market.

Keywords

EN

INVESTMENT TECHNIQUES; SHORT-SELLING; STOCK EXCHANGE

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Wyższa Szkoła Informatyki i Zarządzania z siedzibą w Rzeszowie
• Journal: Finansowy Kwartalnik Internetowy e-Finanse
• Year: 2010
• Volume: 6
• Issue: 2
• Pages: 88-86
• Document type: ARTICLE

Contributors

author

Klosiewicz Pawel

author

Sieradzki Rafal

• Pawel Klosiewicz, Narodowy Bank Polski, Departament Systemu Finansowego, ul. Dantego 3/9, 01-914 Warszawa, Poland

Identifiers

CEJSH db identifier

10PLAAAA08514