09-10-2021, 12:12 PM
Short selling and it’s relation to ADR’s
<!-- SC_OFF --><div class="md"><p>With all the talk of naked short selling, fail to delivers, etc, it got me wondering about how short selling works with adr’s. I came across this paper, I’m not even close to being done reading it yet, but it got me thinking so here I am. How do you reconcile that short selling isn’t legal in the country where the company operates, except in the country where their adrs are listed, selling them short is legal? <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1619465">Short Selling ADRs and Foreign Market Short-Sale Constraints</a></p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Odinthedoge"> /u/Odinthedoge </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/pkzz62/short_selling_and_its_relation_to_adrs/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/pkzz62/short_selling_and_its_relation_to_adrs/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>With all the talk of naked short selling, fail to delivers, etc, it got me wondering about how short selling works with adr’s. I came across this paper, I’m not even close to being done reading it yet, but it got me thinking so here I am. How do you reconcile that short selling isn’t legal in the country where the company operates, except in the country where their adrs are listed, selling them short is legal? <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1619465">Short Selling ADRs and Foreign Market Short-Sale Constraints</a></p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Odinthedoge"> /u/Odinthedoge </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/pkzz62/short_selling_and_its_relation_to_adrs/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/pkzz62/short_selling_and_its_relation_to_adrs/">[comments]</a></span>Kind Regards R