France, Spain and Italy have extended the ban on short selling, aiming to reduce market volatility. Spain and Italy's ban on short selling will last until the end of September, the regulators in the two countries have announced. In France, the temporary ban could last until mid-November. The ban on short selling stocks would lift when the market stabilizes.

Initially, the temporary restriction on short selling should have ended today, after 15 days. Belgium did a similar move two weeks ago, but on indefinite terms. Greece, which was the first to say no to short selling, should end it at the beginning of October, but is currently reassessing this term.

Short selling represents the sale of a security the seller does not own. Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short, according to Investopedia.

In Romania, short selling is not an option for investors, as regulators have not approved such a product, although the market has shown signs of interest.

editor@romania-insider.com

(photo source: Sxc.hu)