The first sign of a full-blown crisis is when the government tries to ban short-selling, and China is no exception. Short-sellers borrow stocks and immediately sell them off, reasoning they can buy them back at a lower price in the future and pocket the difference. But their negative bets put downward pressure on stock prices.

Topics:  china   new york fed   policymakers    but    a    now   watch   ferrari   crisis   ban   market   stocks   harder   price   short-selling   buy   difference   short   stock   short-sellers   sell   sellers   higher   bid-offer   profit   prices   spread   buyers   

 

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