Short selling bans

Short selling bans are temporary restrictions that prevent investors from betting against a stock by selling borrowed shares, typically during times of market stress or volatility. The goal is to prevent extreme downward pressure on stock prices that could worsen a financial crisis or panic. By banning short selling, regulators aim to stabilize markets, protect investors, and maintain confidence. These bans are usually enacted for a limited period and are intended as a safeguard rather than a regular market practice.