I applaud Singapore Exchange’s (SGX) latest ban on “naked” short-selling of shares.
This unreal practice has been tolerated for too long and this restriction, which is long overdue, will help to weed out unhealthy speculating.
“Naked” short-selling occurs when one sells a stock that one does not own in the hope of pocketing a profit when the stock is bought back after its price has fallen.
In the real world, you and I do not sell a car nor a house that we do not own, do we?
For those caught with their pants down, I hope that this serves as a reality check.
Dr.Huang Shoou Chyuan