By: Ahmad Allam
Cairo – Mubasher: The Egyptian Exchange (EGX) chairman Mohamed Farid on Monday said that allowing short selling would increase the market liquidity by 15% to 20%.
The EGX administration is currently working on introducing new financial instruments to revitalize the market, Farid added on the sidelines of Euromoney.
Short selling is the sale of a security that is not owned by the seller, or that the seller has borrowed, to be bought back at a lower price to make a profit. The profit equals the difference between the sale price and the purchase price, minus the interest incurred for borrowing the security.
Earlier, Farid had anticipated that short selling would be allowed in the market by the end of 2017.
Translated by: Mohammad Shokhba
