Short selling declines as U.S. stocks scrape new lows

Newswire

By Deepa Seetharaman NEW YORK, Nov 28 (Reuters) - Short selling of financial and automaker stocks has fallen sharply since July, as traders balk at the dimming prospects to profit from these battered shares and the U.S. government increases control over the economy. Traders and experts expect the trend to continue, and caution that it could exacerbate volatility and weaken a key safeguard against stocks becoming overvalued. Short selling, the practice of selling borrowed stock in hopes ...

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