Short selling in the financial markets should be banned.

By Andrew Mackinnon

Last updated: 11th August, 2022

Short selling is the practice of borrowing an asset, such as a share in a company, selling it, receiving the proceeds of that sale, buying it back, preferably at a lower price in order to make a profit from selling high and buying low, and then returning it to its owner.

Imagine how preposterous it would be if a person borrowed a motor vehicle and they ended up selling it, receiving the proceeds of that sale, buying it back, preferably at a lower price in order to make a profit from selling high and buying low, and then returning it to its owner.

Short selling in the financial markets is logically and morally indefensible because nobody should be allowed to sell something that is owned by somebody else and receive the proceeds of that sale.

Short selling in the financial markets should be banned.

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