Russia Central Bank Bans Short Selling as Stocks Plunge

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Russia’s central bank has ordered brokers to stop allowing traders to place bets against Russian shares

place bets against Russian sharesShort sellers borrow stocks they believe are overvalued and immediately sell them, hoping to repurchase the shares for a lower price when they need to be returned and to pocket the difference. The MOEX, Russia’s benchmark stock index, crashed 45% Thursday.

Officials earlier had suspended trading on Moscow’s exchange before reopening it at 10 a.m. local time.

 

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