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Lehman Brothers

Institutions link short selling to prices

By Pauline Skypala

Published: September 20 2009 08:25 | Last updated: September 20 2009 08:25

Most institutions that lend shares to short sellers think there is a link between short selling and share price movements.

Over 90 per cent of respondents to a global survey by RBC Dexia on securities lending said short selling had an influence, with a third viewing the link as significant. This was despite empirical studies that had shown there was little connection, said RBC Dexia.

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