By Tony Winterburn • Published: 13 Mar 2020 • 10:56
The restriction will apply to all liquid shares whose price fell more than 10% on Thursday and all illiquid shares that fell by more than 20%, the regulator said. Spain’s IBEX-35 index dropped 14.06% on Thursday, its worst-ever single-day loss.
Short-selling, in the context of the stock market, is the practice where an investor sells shares that he does not own at the time of selling them. He sells them in the hope that the price of those shares will decline, and he will profit by buying back those shares at a lower price.
Italy’s market regulator said it was introducing an outright short-selling ban on 85 stocks after the Milan bourse plunged 17% on Thursday, recording its worst loss ever, due to a coronavirus crisis in the country.
Market watchdog Consob said the measure, which concerns all the top names on the Milan bourse including banks UniCredit and Intesa Sanpaolo as well as energy groups Eni and Enel, would be effective on Friday.
The outright ban prevents sales of shares that have previously been borrowed, strengthening an existing ban on naked short-selling
Share this story
Subscribe to our Euro Weekly News alerts to get the latest stories into your inbox!
By signing up, you will create a Euro Weekly News account if you don't already have one. Review our Privacy Policy for more information about our privacy practices.
Share your story with us by emailing newsdesk@euroweeklynews.com, by calling +34 951 38 61 61 or by messaging our Facebook page www.facebook.com/EuroWeeklyNews
By signing up, you will create a Euro Weekly News account if you don’t already have one. Review our Privacy Policy for more information about our privacy practices.
Download our media pack in either English or Spanish.