04
May
2016
|
20:17
Asia/Singapore

The impact of short selling on insider trading

Asst Prof Qian Wenlan from the Dept of Finance at NUS Business School noted from her study that short selling introduces competition that accelerates the rate at which private information is revealed to the market via insider trading. She opined that regulators will have to think about which is the lesser of the two evils – short selling or insider trading – as short selling has its benefits, after all.