Oct 14 2006
KUALA LUMPUR: Bursa Malaysia said it is deferring the launch of regulated short-selling/securities borrowing and lending (RSS/SBL) activity on the exchange until January 2007. frankly, i’m disappointed with the repetitive deferment of this simple yet useful & common practice of “short-selling” … in other matured markets, short-selling has been lauded as an important contribution to stock market efficiency … just consider this, besides “buy-low sell-high” (hopefully) you can now “sell-high buy-low” with short-selling … meaning you have another way to make profit, aren’t that beautiful ?
short selling or “shorting” is a way to profit from the decline in price of a security, such as stock or a bond (not common here) … most investors “go long” (or buy first sell later) on an investment, hoping that price will rise … to profit from the stock price going down, a short seller can borrow a security and sell it, expecting that it will decrease in value so that they can buy it back at a lower price and keep the difference as profit …
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October 14th, 2006 by financetwitter
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