The Relevance of Short Sales to the Maltese Stock Market

Paul V. Azzopardi and Silvio Camilleri (silvio.j.camilleri@um.edu.mt)
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Paul V. Azzopardi: Azzopardi Investment Management Ltd.

Finance from University Library of Munich, Germany

Abstract: The paper discusses the possible effects of short sales on the operation of a very small stock market such as the Maltese one. After studying the basic mechanics of short selling procedures, the paper reviews the salient literature with particular reference to how short sales may enhance informational efficiency and their relationship with liquidity. The paper proceeds by examining these relationships in the context of the Maltese securities market. The study reveals that short sales may be desirable on the Maltese stock market for enhancing price efficiency and liquidity, yet a more formal framework for conducting such transactions is required. In addition, short positions may be particularly risky in the context of the Maltese stock market, due to low liquidity levels.

Keywords: Short Sales; Malta Stock Exchange; Liquidity (search for similar items in EconPapers)
JEL-codes: G (search for similar items in EconPapers)
Pages: 17 pages
Date: 2004-09-07
New Economics Papers: this item is included in nep-fin
Note: Type of Document - pdf; pages: 17
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: The Relevance of Short Sales to the Maltese Stock Market (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpfi:0409009

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