Why a ban on short-selling is pointless

Four European countries have recently introduced short-selling bans. It's a completely pointless exercise, says Tim Bennett. Here, he explains why, and names three ways you can still profit from a bear market.

It isn't often that a regulator steps in to try and stop a bubble developing. But give them a bust and they always start meddling. Look at France, Italy, Belgium and Spain. They weren't bothered when bank share prices were clearly far too high. But now they are falling, they've banned short-selling. This makes no sense. Here's why.

What is short-selling?

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.