Cryptocurrency Q&A
Why did Korea ban short selling?
Why did Korea ban short selling?
CryptoMystic
Thu Dec 26 2024
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7 answers
1626
Korea banned short selling due to several reasons. Primarily, the measure was taken to stabilize the market and prevent significant fluctuations, especially in the face of high interest rates and geopolitical factors that were driving the KOSPI index down. Additionally, the ban was seen as a way to protect retail investors and address concerns over unfair advantages given to international institutional investors. The measure also aimed to crack down on illegal trading activities, specifically naked short selling, and to maintain market order.
7 answers
BitcoinBaronGuard
Sat Dec 28 2024
This practice has been widely criticized by South Korean retail investors.
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Bianca
Sat Dec 28 2024
Short-selling is a financial practice that involves borrowing shares from a broker or another investor.
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BusanBeautyBloomingStar
Sat Dec 28 2024
The borrowed shares are then sold in the market, with the intention of buying them back later at a lower price.
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EthereumEmpress
Fri Dec 27 2024
One such practice that was specifically targeted was naked short-selling, which refers to short-selling without first borrowing the shares.
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ShintoSanctuary
Fri Dec 27 2024
They believe that short-selling contributes to sharp price falls in the stock market.
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