German Cabinet approves trading curbs bill
June 2, 2010 It wasn't clear when parliament would consider the plan approved
by ministers Wednesday.
Germany's regulator surprised markets last month by banning
naked short-selling of eurozone government debt and major financial
stocks.
The legislation would extend it to all stocks. Finance Minister
Wolfgang Schaeuble has said it could be superseded by future
European regulation.
Short-selling is a way of betting an asset will go down by
borrowing securities and selling them in hopes of buying them
cheaper later. Naked short-selling involves selling shares without
first borrowing them.
