The Relevance of Short Sales to the Maltese Stock Market

Azzopardi, Paul and Silvio John, Camilleri (2003): The Relevance of Short Sales to the Maltese Stock Market. Published in: Bank Of Valletta Review , Vol. -, No. 28 (2003): pp. 1-17.

Abstract

This paper outlines the main concepts behind short selling activities and explores their relevance to a smaller stock market in the context of Maltese securities. While short sales have desirable properties, especially with respect to pricing efficiency, formal and informal restrictions may hinder this function. Short sale activity may be particularly risky in the context of the Maltese market, due to its low liquidity level. Short sales on their own may not be sufficient to enhance liquidity levels on this market.

• Item Type: MPRA Paper
• Language: English
• Keywords: Short Sales, Malta, Securities Trading, Equity Markets
• Subjects: G - Financial Economics > G0 - General > G00 - General; G - Financial Economics > G1 - General Financial Markets > G14 - Information and Market Efficiency ; Event Studies ; Insider Trading; G - Financial Economics > G2 - Financial Institutions and Services; G - Financial Economics > G2 - Financial Institutions and Services > G23 - Non-bank Financial Institutions ; Financial Instruments ; Institutional Investors

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