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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Giordano Bruno who wrote (160595)10/27/2008 9:24:04 PM
From: DebtBomb of 306849
 
Japan Rules on Short Selling Take Effect Today, Nakagawa Says

By Keiko Ujikane

Oct. 28 (Bloomberg) -- Japanese Finance Minister Shoichi Nakagawa said restrictions on short-selling of shares will take effect today to bolster the stock market.

Nakagawa, who is also minister in charge of regulating the financial sector, spoke to the press in Tokyo today. The Financial Services Agency had previously said it will ban so- called naked short-selling starting Nov. 4.

Short-sellers borrow shares and sell them, betting the price will fall and they'll be able to buy them later, return them to the lender and pocket the difference in price. In naked short-selling, traders never borrow the shares, raising concern that the markets will be flooded with sell orders to drive down prices.
bloomberg.com
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