As it was informed by "Market Leader (US)"
Caution is up to the point: the ban on “short” sales is prolonged
The ban on “short” sales is prolonged by Italian and Spanish stock regulators till September 30, and by the French ones – till November 11.
This ban was introduced with the purpose of stabilization after strong fluctuations occurred at exchange trading marketplaces on August 10-11.
Banks’ stocks were mostly harmed during those days; in particular, the cost of French Societe Generale lowered by 15%, due to what the management of the bank initiated a special investigation.
“Short” sales are the uncovered sales, at which a broker flogs the shares than have been taken on credit with the purpose to buy out and return them afterwards. They allow earning at the falling market and may on condition of considerable volumes cause a stock market crash.
There now exists a long-term ban on such transactions in many other countries.