المستخلص: |
This study aims to identify the application of " borrowing securities" mechanism for the purpose of selling and the guidelines of dealing with them in the stock market, as well as knowing how this technique was applied by the Egyptian Stock Exchange in December 2019 , and its impacts on liquidity. The mechanism of borrowing securities for the purpose of selling works on balancing supply and demand in the market, especially in light of the application of "margin buying system". It can also guarantee to the investor ,who owns securities, the ability to invest his securities without being exposed to risks of direct trading. As a consequence, it facilitates "the hedging process", balances the price differences, rebalances and revives the market, and causes a major rise in trading volumes and liquidity.
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