المستخلص: |
The legal regulatory framework for short selling is considered to be one of the legal and economic challenges that faces the legislator. Margin trading is a recent financial instrument that have two sides; one is concerned with credit risk that faces the non-banking financial market, and the other is the economic platform that encourages Investors and traders to trade, the thing that will lead to nourishment in the financial markets. This paper attains to study the legal frame work that protects and increases the investors’ arid the traders’ confidence in the market. Meanwhile, the paper will review the advantages and disadvantages of lending financial papers for the purpose of selling. This paper recommends that regulations and legal standards should be implemented by the legislator, to regulate such recent financial instruments, in order not to only consider the traditional instruments for the sake of activating the trading activity. Moreover, we must cope with the resent financial innovations by monitoring the United States’ regulations to organize such instruments.
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