Derivativesshort sellingmutual fundsriskperformanceexpense ratioThe use and effect of derivatives and short selling by US equity and bond open-end mutual funds are studied using a large and unique database. We find that the likelihood of their use is positively related to fund size, family size,...
The use and effect of derivatives and short selling by US equity and bond open-end mutual funds are studied using a large and unique database. We find that the likelihood of their use is positively related to fund size, family size, and fund turnover for both fund types except for short...
constraints, asset managers’ investment behavior is often subject to self- and client-imposed restrictions, such as limits on investing in international stocks, diversification rules, limits on leverage, limits on short selling and limits on the use of derivatives (Bank for International Settlements,...
What is leveraged short selling? Leveraged short selling lets traders use debt to increase their buying power. With the additional funds, traders often purchase futures and other financial derivatives to speculate on the stock or bond markets. By taking additional risk, traders seek to capture out...
CFTC chief questions ‘naked’ short selling ban - Gary Gensler, head of the US agency that regulates a large part of the derivatives market, told the European parliament on Tuesday he did not believe that a ban on “naked” short selling of credit defau
Italy’s financial regulator has penalised two Dutch high-speed traders for illegally short selling shares in Saipem after the oilfield engineer botched a EUR2bn fundraising in 2022. Consob on Tuesday said it had issued combined fines of EUR4.7mn and ordered the return of the EUR4.9mn in total...
Long-Short Equity (L/S) is an investing strategy comprised of taking long positions on publicly-traded equities anticipated to rise in share price, paired with short-selling to mitigate downside risk. How Does the Long-Short Equity Strategy Work? The long-short equity strategy refers to portfoli...
Meantime, he was paying close to $200,000 a month in mortgages, and his income was only $125,000, that money coming from a promissory note he received after selling his car wash business. Unable to continue paying more than he was making, Dykstra says he was forced to sell the promisso...
Unfortunately,short selling gets a bad namedue to the practices employed by unethical speculators who have used short-selling strategies and derivatives to deflate prices and conduct bear raids on vulnerable stocks artificially. Most forms ofmarket manipulationlike this are illegal in the U.S. but m...
short selling is regulated by the U.S. Securities and Exchange Commission(SEC)under the Securities Exchange Act of 1934. Regulation SHO, implemented in 2005, is the primary rule governing short selling that mandates short sales can only be executed in a tick-up or zero-plus tick market, mean...