by Thomas A. Dubbs

May 29, 2009

The chatter over short-selling and its impact goes on, and one study says the benefits of these trades need to be acknowledged.

The recent lively debate over short-selling has resulted in the Securities and Exchange Commission's proposal of several new rules that prevent market participants from short-selling when markets are in decline. However, a new study suggests that we should be cautious in considering the benefits -- and the surprising unintended consequences -- of short-selling regulation.

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