<p> </p><p> </p><p> </p><p> </p><p> </p><p> </p><p> </p><p> </p><p> </p><p> </p><p> </p><p> </p><p> </p><p> </p><p> </p><p> </p><p><strong><strong><p>Background:</p></strong><p> </p><strong><strong><p>Problem:</p></strong><p> </p><strong><strong><p>Purpose:</p></strong><p> </p><strong><strong><p>Method:</p></strong><p> </p><strong><strong><p>Conclusion:</p></strong></strong>Based on our findings we do not advocate short sale regulations to<p>be introduced on the Swedish financial market. Neither does our</p><p>analysis indicate that the market performance is significantly affected</p><p>by shorting, nor does restrictions work as intended which we have</p><p>seen in other countries during the fall of 2008.</p></strong>The analysis have been drawn from four cornerstones; previous<p>research, actions of other countries’, a statistical analysis and</p><p>interview findings. We have examined and compiled different</p><p>strategies for restricting short sales around the world as well as</p><p>conducted a cross-correlation analysis to investigate if share price is</p><p>related to stock loan. Furthermore we have interviewed a</p><p>professional investor and a middle manager at the Swedish Financial</p><p>Supervisory Board to obtain experts’ views on the subject.</p></strong>With background of other countries’ actions, the purpose of this<p>report is to investigate why, if at all, short sale regulations should be</p><p>introduced on the Swedish financial market.</p></strong>Is there a correlation between the number of shorted shares and the<p>change in overall and individual stock price? What actions have been</p><p>taken by countries in Europe, Asia and the United States regarding</p><p>short selling during the fall of 2008 and what is SFSB’s attitude</p><p>towards the subject? Are there any benefits for the Swedish financial</p><p>market from shorting regulations?</p></strong>In times of financial crisis short selling is often quickly blamed for</p><p>price volatility and media broadcasts pleads for prohibitions and</p><p>restrictions. Extensive research, however, cannot find any empirical</p><p>evidence that shorting is affecting markets negatively; often it is the</p><p>other way around. Sweden has been relatively liberal when it comes</p><p>to shorting restrictions and even though share lending has increased</p><p>since the start of the year, no actions have been taken by the</p><p>Swedish Financial Supervisory Board.</p><p> </p><p> </p>
Identifer | oai:union.ndltd.org:UPSALLA/oai:DiVA.org:hj-7810 |
Date | January 2009 |
Creators | Bodestedt, Fredrik, Andersson, William, Hjortsjö, Carl |
Publisher | Jönköping University, JIBS, Business Administration, Jönköping University, JIBS, Business Administration, Jönköping University, JIBS, Business Administration |
Source Sets | DiVA Archive at Upsalla University |
Language | English |
Detected Language | English |
Type | Student thesis, text |
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