Euro falls to four year low as naked shorting ban spurs risk aversion
Shorting shares (borrowing them) and betting the stock will go down is a normal practice. The new normal has included ‘naked’ shorting which means you don’t even have to borrow/own the shares to short them. This is sort of expanding the number of shares to infinity, although the market types will tell you that they are creating liquidity through this process. What it really does is let people make money from John Q Public. Even if you aren’t in the market, your pension fund probably is. By banning this practice in Germany, Merkel is trying to establish a more solid market, as well as stabilize the Euro.