"Legal guarantees for the execution of margin purchase and short selling contracts"

Document Type : Original Article

Author

Faculty of Law - Mansoura University

Abstract

The investor is usually looking for a safe environment for his investments, and the investor does not feel safe unless his investment in a market facilitates the transfer of his investment from one field to another, and this can be achieved if there are many investment options in the financial market, in addition to the high liquidity that these markets must enjoy, and this high liquidity is not achieved by relying on the sale and purchase of traditional securities only, Rather, the national market must keep pace with the developments that have occurred in the global markets, there are transactions that depend on the margin that give the investor the ability to trade with funds that exceed his financial ability, and have a major role in providing liquidity to the stock market, the most prominent of which is the margin purchase contract and the short sale contract, but these contracts face many obstacles, the most important of which is the lack of regulation of these contracts at the level of legislation.

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