Short on S&P 500

Q: what is the security being bet against?

A: the SPDR S&P 500 Trust

Q: what is the short’s motivation?

A: Many investors who sell shares short have decided that the ability to hedge their portfolios — or simply bet on a selloff — is wise.

Q: why do people push the regulators to curb short selling?

A: “The increase in bets against the market coincides with a push in other countries to temporarily curb short selling. At times of heightened volatility, critics often argue that the practice exacerbates downward pressure on stock prices. But Jay Clayton, the chairman of the Securities and Exchange Commission, has argued short selling is needed to facilitate ordinary market trading.”

--

--

--

Love podcasts or audiobooks? Learn on the go with our new app.

Every analyst thinks these three stocks are overvalued — CPB, HRB, ED

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Jun Gao

Jun Gao

More from Medium

Gif of Jon Baron and Natalie Williams riding a tandem bicycle with a graphic that reads “25% of 8th graders can’t read at a basic level”
a beautiful latte with foam art and a rose petal sprinkle with a soft background of bokeh