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South Korean stocks surge after short-selling ban

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SEOUL, Nov 6 — South Korean stocks surged today after authorities imposed an eight-month ban on short selling, with officials citing “illegal shorting practices” by global...

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Short selling involves traders borrowing securities to sell in hopes of buying them back at a cheaper price later. A decision on whether to reinstate short selling in July will be made after a review of improvements in the market, Kim added.The FSC chief said there would be a thorough probe into global investment banks to see whether they have carried out any illegal short selling, warning of “stern punishment”.

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