FnGuide Changes Term from Short Selling to Borrowed Short Selling

[Asia Economy Reporter Minji Lee] FnGuide announced on the 16th that it will change the term for short selling provided in its financial market data analysis systems DataGuide, QuantWise, and FnGuide services to borrowed short selling.

Short selling is a trading technique where stocks expected to decline in price are borrowed and sold, and if the stock price actually falls, the stocks are repurchased at a lower price to return the borrowed shares, thereby making a profit. Short selling is classified into borrowed short selling, where stocks are borrowed and sold, and naked short selling, where stocks are sold without holding them beforehand; however, naked short selling is not permitted in Korea.

FnGuide explained, “Due to the extension of the short selling ban caused by the novel coronavirus infection (COVID-19) and the fact that short selling has become a social issue to the extent that financial-related bills have been proposed for institutional improvements, we are changing the term to borrowed short selling to help accurately understand short selling.” They added, “We plan to continue research and review on terms used in the financial market going forward.”

This content was produced with the assistance of AI translation services.