Spanish stock market regulator bans short-selling over Liberbank for a month – Reuters

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Spanish stock market regulator
CNMV said on Monday it would ban short sales on trading stocks
of Liberbank initially for one month.

The stock regulator said this measure was taken after
considering the recent stock performance of Liberbank in the
aftermath of Banco Popular’s rescue by the Single Resolution
Board.

Liberbank has lost more than 40 percent of its stock value
in the last 10 trading session after closing down 17.6 percent
on Friday.

The CNMV said that the ban on short sales could be extended
or lifted after one month.

Short selling is the sale of a security that is not owned by
the seller, or that the seller has borrowed, and motivated by
the belief that a security’s price will decline, enabling it to
be bought back at a lower price to make a profit.

(Reporting By Jesús Aguado; edited by Robert Hetz)