Prof. Jayanth R. Varma’s Financial Markets Blog

A blog on financial markets and their regulation

Towards a market only for buyers

Towards a market only for buyers

The current state of progress towards a market where only buying is
permitted is as follows:

  • Pakistan: There is a floor
    price
    on the main index. “This Floor-Price-Level means that,
    KSE index cannot decrease below the closing level of [27th of August,
    2008]: For KSE-100 index, the Floor-Price-Level is 9144.93
    points. This action is taken because of the decline in KSE index to
    very low levels.”
  • Russia: The stock market itself was closed for a couple of
    days.
  • United Kingdom: Shorting of all financial stocks is banned:
    “The FSA stands ready to extend this approach to other sectors
    if it judges it to be necessary.”
  • United States: Probably headed in the same direction. Updated:
    They are already there
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