FSA bans short selling

The ban will remain in place until mid-January next year although this will be reviewed after 30 days. The FSA said it intended to publish a comprehensive review of the rules on short selling in January.

Short selling is the practice of borrowing shares from an existing investor and then selling them with the hope that the price will fall. If all goes according to plan, the borrower will then buy back the shares at a lower price, give them back to the original investor and pocket the differe