【Native Speaker每日综合训练—41系列】【41-01】经管 Short Selling

TaoRs92

内容：TaoRs92  编辑：TaoRs92

Official Weibo: http://weibo.com/u/3476904471


新系列又来了，时间过的真的很快。
今天的话题是Short Selling，大概是专业性比较强的话题。
做空在中国似乎是被禁止的，因其巨大的风险，在某些经济金融形势不太好的时期，美国和欧洲也会适时发出禁令。

Speaker没找到特别合适的材料，用与股票有关的npr充个数。没有提供transcript，不过内容不难，相信大家都没问题~
Speed只有两篇文章，详细介绍Short Selling的概念、特征及要点。如果读完还有不明白的地方，可以看看下方遮盖的中文解释。
Obstacle比较高冷，有一定难度，主要阐述监管对Short Selling及相关市场环境的影响，部分背景词汇以notes的形式给出。

      沽空，即卖出并不拥有的东西。从经纪人处借入股票并在市场上卖出，卖出所得将在账户中记入所得款项，并产生沽空股票的记录。最后必须买回股票以填补先前的空仓或沽盘（将股票退还给拥有人，即经纪人）。例如现在和黄的市价是120元，若预测股价将很快跌至110元，可以向经纪人借入股票，120元沽空1000股，这样账户将记入120,000元，并获得利息。三天后，若和黄股价下跌至110元，则可用110,000元从市场购回1000股股票，再将股票退还予经纪人。
       注意：若沽空期间股票产生分红，需补偿股票拥有人分红金额
                 （经纪人为A，沽空人为B，下一买家为C；B向A借入股票，卖给C，C成为股票的拥有者，因此
                    沽空期间的分红属于C，而B需要额外补偿A分红金额）

       Short Selling/Sell stocks short 做空
       Stop Loss 止损命令
       Dividends 分红

Enjoy~~

Part I: Speaker

Taking Stock Of 2 Tech Giants:

What's Next For Apple And Microsoft

by AARTI SHAHANI

July 23, 2014 4:45 AM ET

Source：npr

http://www.npr.org/2014/07/23/334275943/taking-stock-of-2-tech-giants-whats-next-for-apple-and-microsoft

[Rephrase 1, 3min 32sec]

TaoRs92

Part II: Speed

Here's How to Sell Stocks Short

(and Why You Probably Shouldn't)

Hank Coleman   Jan 13th 2014 6:00AM

[Warm Up]

      For many investors, experienced and novice alike, the idea of short selling stocks can be enticing. You can make money investing even if the stock market is in a downturn. You can earn a profit on days when others are losing money.

      But selling a stock short can severely punish investors -- especially if they don't understand the risks.

      "A newbie investor dabbling in short selling is no different than someone off the street dabbling in lion taming," says certified financial planner Jeff Rose. "In both cases, you're most likely going to get bit -- hard. If you're considering short selling, you better have a decent resume of buying and selling stocks."

[112 words]


[Time 2]

What Is Short Selling?

      You can win on a bet -- no matter which way the stock is moving -- as long as you're guessing the right direction. Short selling allows you to invest in stocks even when you think that their share price will decrease.

      Unlike typical long investors, who buy hoping that share prices will increase, being on the short side of the position, or a short seller, is the exact opposite. You're actually counting on the shares decreasing in value. Naturally, that's a little counterintuitive for many investors.

      When you think that a stock's price will decline, you can tell your brokerage firm to short the stock for you. Essentially, you're borrowing shares from the brokerage and then selling them; when -- or rather, if -- the price declines, you purchase the shares yourself at a lower price, return those "borrowed shares" to the brokerage, and lock in your profit. The brokerage earns a commission on the transaction and a small amount of interest in most cases, depending on how long you borrow the stock.

The Downside of Short Selling Is Infinite

      One reason short selling is risky for investors is that the amount of money you can lose on an investment is essentially unlimited. There's technically no cap to the downside you can experience when an investment you're shorting turns against you.

      For example, if you're a traditional long investor who thinks a stock's price is going higher and you're wrong, the most that you can lose is the total amount that you invested. If a stock you bought plummets to zero, you lose your entire investment. Of course, few of us would let it get that far before we sold in a panic.

      It's different for an investor who's selling a stock short, betting that the share price will decline. If you're wrong and the stock price rises, there's technically no limit to how high it can rocket to. And as a short seller, you will be, at some point required to buy those shares you borrowed from your broker, at whatever price, so that you can return them. So there's a potential to lose a substantial amount of money if the stock price increases rapidly.

[369 words]


[Time 3]

Short Selling May Not Be Liquid

      You might also find it hard to find a company and its market maker willing to offer shares on loan for you to short.

      Many investors go to their brokerage to do this -- but your brokerage firm has to own the shares for you to borrow.

      An interesting side point: Many investors don't realize this, but in nearly all cases, the shares of stock you buy through brokerages aren't technically held in your name -- they're held by the firm "in street name." (The reason? It massively simplifies the paperwork involved in buying and selling stocks, but never fear. In practice, you still own the assets you think you do.)

      When a brokerage holds shares in street name, it can then turn around and lend them out to its other clients to sell them short. Of course, they're still your shares, and you can redeem them anytime.

      Given that, you might not be able to sell shares of a company short if they're not liquid enough. Small and medium-size companies simply have fewer shares available for brokerages to lend to their clients. If a brokerage firm doesn't have a client who owns the shares you want to short, and it can't get them in the market, then you won't be able to short them.

      Short selling can be a lucrative investment option. It has a lot of allure because it lets you play the other side. But short selling can be very dangerous for the new or inexperienced investor. Investors should not take selling shares short lightly.

[264 words]

Source：Daily Finance
http://www.dailyfinance.com/2014/01/13/how-to-sell-stocks-short-risks/

10 Things You Must Know In Order To Short Sell Successfully

If you have never shorted a stock before, or if you are just getting started trading stocks, you need to read these facts about short selling before you make any more trades.

[Time 4]

Number 1:
      When you buy a stock, the worst that can happen is that the stock goes to $0 and you lose the money you invested in it. When you short sell a company, you can lose much more. Say you short sell XYZ at $10 and then it goes to $30, you have lost more than what you put into it. This is much different from when you buy a stock at $10 and it goes to $0. A stock will never be worth less than $0.

Number 2:
      It can be very difficult to find shares to short of a specific stock. Many times, you have to reserve the shares or short it a little early since the shares most likely won’t be available when you actually do want to execute a short sell.

Number 3:
      Be careful to pick stocks that have enough liquidity. This goes for both buying and shorting stocks. The lower the liquidity, the harder it is to get in or out of a position. Remember, when you buy, someone has to sell and vice versa.

Number 4:
      You will most likely need to have a margin account in order to short stocks, which means you may have to put up slightly more capital than if you were just planning on buying stocks. The amount of money you need to open an account will vary based on what broker you use.

Number 5:
      You may experience a trader’s nightmare; a margin call. This means that you need to put more money into your account, also meaning you have fairly large losses in your account. When you use margin, you are basically taking out a loan from your broker. If you do not put up more money into your account, the trade will be automatically closed and you will no longer hold that position.

[313 words]


[Time 5]

Number 6:
      The dreaded short squeeze. This is another short sellers’ nightmare. If there are a lot of buyers that come in all at once, for whatever reason, the stop will shoot up in price. This could happen when a stock has a large number of shares shorted and good news is released. People will be rushing for the exits and others will be trying to buy up the shares like crazy. This is also typical on Friday afternoons, as many people don’t like to be long over the weekend. As a short seller, you’ll inevitably experience this at some point. Just follow Tim’s rule of cutting your losses quickly and you will be fine. Most people just don’t follow that rule since they are ignorant suckers that don’t want to take the time to learn what they are doing before entering the trade.

Number 7:
      Please make sure you know how to exit your position before you enter it in the first place. When you short a stock, you will need to “buy to cover” when you want to exit the trade. Many people make the rookie mistake of filling out the trade order form incorrectly. Please don’t be one of those people.

Number 8:
      Tim never uses stop losses, but that is also because he rarely trades if he isn’t going to be able to watch the trade closely. If you plan to leave your computer for a fair amount of time after you enter a short position, I highly recommend using a stop loss. If you don’t, you risk the stock rising rapidly and losing far more money than you ever thought you would. A stop loss will automatically exit you from the position if the stock reaches a certain level. Though do keep in mind that stop losses are not fool-proof.

[324 words]


[Time 6]

Number 9:
      Have a plan before you execute a short sell. How many times have Tim or I blogged about having a PLAN before entering any sort of trade? Countless; so it must be important, right? This is one of the keys to becoming a profitable trader. I really have no idea how some people think they will earn a lot of money trading stocks without having a plan before they enter their trades. The plan should remind you why you shorted the stock, what your target price for the stock is, and at what price you should exit your position. Also, do not let your emotions get in the way of sticking to the plan.

Number 10:
      This doesn’t apply to all stocks, especially the penny stocks and micro cap stocks that Tim specializes in, but beware of dividends if you are a short seller. Tim has a blog post on this here. (http://www.timothysykes.com/2013/04/3-notes-about-short-selling/) If you are short a stock at the market close the day before the so called “ex dividend date,” you will owe the dividend. This means that it will be deducted from your trading account and paid to the person who actually owns the shares. For example, say you own 100 shares of company XYZ, and then company XYZ declares a dividend of 14 cents per share, you will need to pay out $14. Doesn’t seem like a lot, but if you owned 1,000 or even more shares of XYZ, it becomes a bigger deal.

[256 words]

Source：Timothysykes
http://www.timothysykes.com/2013/08/10-things-you-must-know-if-you-are-going-to-short-sell/

TaoRs92

Part III: Obstacle

Notes:
notification threshold--通知阈值
sovereign debt--主权债务
sovereign credit default swaps (CDSs)--主权信用违约掉期
securities lending--证券借贷

Impact of European Short-Selling Regulation:

Mixed Effects on Markets

By Rhodri Preece, CFA 7 June 2013

[Paraphrase 7]

      The European Securities and Markets Authority (ESMA) recently published its evaluation of the impact of the European Union’s short-selling regulation, which came into effect on 1 November 2012. The regulation imposes transparency requirements on the reporting of net short positions in stocks, sovereign debt, and sovereign credit default swaps (CDSs). It also prescribes a mandatory “locate” rule for short sales and bans uncovered or “naked” sovereign CDS transactions.

      Although the regulation has only been in place for a short period of time (a caveat acknowledged in the report), ESMA’s evaluation reveals some interesting findings. On the positive side, the incidence of settlement fails has fallen. However, the regulation appears to have had a mixed effect on market liquidity, and a negative effect on the efficiency of price discovery. There have also been mixed effects in sovereign CDS markets. All in all, these findings are unlikely to satisfy either the political factions who pushed to introduce this regulation in an effort to curb market instability, or the cacophony of discontent from the hedge funds and financial institutions impacted.

      The transparency provisions of the short-selling regulation require market participants to notify the regulator of net short positions in a stock of 0.2% or more of the issued share capital. The notification threshold for reporting net short positions to the market is 0.5%. Notifications are also triggered for every 0.1% change in net short positions within these parameters.

ESMA Report Findings

      Between 1 November 2012 and 28 February 2013, ESMA’s report identifies the following facts:

      There were 12,603 notifications reported to regulatory authorities on 970 different shares in 18 countries.

      74% of notifications were within the 0.2% and 0.5% thresholds; the other 26% of notifications stood above 0.5% and were therefore publicly disclosed.

      Only a few market participants shorted a large number of shares, with 75% of participants shorting on seven different shares or less.

      Short position holdings were quite concentrated: 10 entities held more than 28% of all the positions reported in the period. Approximately 83% of all the reported short positions were held by entities domiciled in the U.K. or the U.S.

      The shares most subject to short selling belonged to the industrial goods and services sector with 18.2% of all reported short positions, followed by the technology sector with 9.7% of all reported short positions. Financials and banks accounted for 3.6% each and insurance for 2.1%.

      More significantly, ESMA notes that only 14.5% of the positions held below the 0.5% threshold moved above this threshold, among which half crossed it back. Similarly, only one quarter of the positions that reported close to 0.5%, and above 0.4%, crossed the public disclosure threshold. This suggests some reluctance from market participants to disclose their short positions to the public.

      Further, quantitative analysis performed by ESMA suggests that the regulation has led to a reduction in bid-offer spreads, but no clear impact on volumes or the price impact of trades. ESMA finds a slight decrease in volatility, but also notes a negative impact on the speed of price discovery. So overall, the impact of the regulation on stocks is very much mixed.

      For sovereign debt and sovereign CDSs, net short positions are required to be reported only to the regulator, and the notification thresholds depend on the amount of debt issued. The threshold is 0.1% if the total outstanding debt is less than €500 billion, and 0.5% if the amount is greater than €500 billion or if there is a liquid futures market. Positions in sovereign bonds in the cash market are adjusted by their duration, while positions held through derivatives are required to be delta-adjusted.

      Compared to shares, a very low number of notifications were received on sovereign debt over the measurement period compared to shares: only 148 notifications were made on 13 sovereign entities in 11 countries. ESMA therefore suggests that an adjustment might be needed to the notification thresholds, as well as an adjustment to the methodology used to calculate positions.

Slowdown in Securities Lending, Settlement Discipline Improves

      Regarding the impact of the mandatory locate rule, ESMA finds that activity in securities lending markets has been lower since the regulation was implemented. Further, there has been a significant reduction in the quantities of stocks on loan in the EU compared to the control group (U.S. stocks). The securities lending market does appear to have recovered, however, since January 2013.

      According to the regulation, the locate rule should improve settlement discipline and lead to a decrease in settlement fails on EU equities. The evidence gathered by ESMA supports this assertion. For around half of the countries, there were fewer settlement fails after the regulation while the others saw no significant changes. Therefore, ESMA concludes that the regulation was followed by an increase in settlement discipline.

Sovereign CDS: Mixed Evidence

      The restrictions on uncovered sovereign CDS transactions are perhaps the most contentious aspect of the regulation. For its statistical analysis, ESMA examined sovereign CDS spreads for 20 EU countries before and after the application of the regulation. To control for the impact of other market developments, ESMA compared these spreads against the spreads for a control group of non-EU Organisation for Economic Co-operation and Development (OECD) countries.

      The findings show only weak evidence of slightly lower EU sovereign CDS spreads after the introduction of the ban on naked sovereign CDS transactions (see chart below). Specifically, ESMA estimates the ban has led to a slight reduction of approximately 26 basis points in the CDS spread of countries subject to the regulation, but this reduction is statistically significant only at the 10% confidence level. Similarly, there appears to have been no statistically significant effect of the regulation on sovereign debt yields.

      Overall, it is difficult to properly evaluate the impact of the ban on naked sovereign CDSs given the relatively short measurement period and the coincidence of easing of market tensions in the eurozone in the period since the ban was introduced. This is illustrated in the chart below, which shows CDS spreads for a selection of sovereigns before and after the implementation of the regulation.

Source: Bloomberg

      The Regulation also allows competent authorities to impose temporary restrictions on short selling of stocks in case of significant price falls. Since the regulation came into force in November 2012, bans were introduced by the Italian regulator, Consob, on seven stocks on the Italian market. There were also temporary short-selling bans in place in Greece and Spain before the regulation came into force, which were partially lifted (Greece) or expired (Spain) in February 2013.

      ESMA reports that the short-selling restrictions introduced during trading sessions tend to be imposed with a non-trivial delay. By the time the regulator announces the restriction and market participants receive the information, the sell-off has typically already ended, prices have stabilized, and transaction volumes have started to normalise.

      Moreover, transaction volumes tend to decrease during temporary short-selling bans relative to the pre-ban sell-off. After a short-selling restriction is imposed, average transaction volumes fall by 71.8% relative to pre-ban averages. Temporary bans, however, do not seem to have a significant impact on the efficiency of price formation, or on price volatility either.

      So what should be made from all these findings? Clearly, the jury is still out as to the overall effect of this regulation. But this merely underlines that the clamour for more regulation, as well as the industry push-back, is all too often overdone.

[1243 words]

Source：CFA Institute
http://blogs.cfainstitute.org/marketintegrity/2013/06/07/impact-of-european-short-selling-regulation-mixed-effects-on-markets/

小蘑菇开始打怪

Tao的帖！~~~
--------------

speaker:

Apple&Microsoft report their third quarter financial report

little down of M

strong perform in China of A

expectation for each

time7:

report: effects and findings

settlement

slight reduction of sovereign CDS transactions

transaction volumes

obstacle is really hard to understand even though I know the meaning of each word
THX Tao again~

wangweiyi5332

yeah ~~~~~~~~~~~~~~~~~~~~~前排~~~~~~~
Timer2 4:07
what is short selling and what impact that the short selling will have on the investors.
Timer3 2:30
Timer4 2:31 基本上看不懂
Five advice that can help you shot successfully.
Timer5 2:11
Timer6 1:45
Obstacle 10:35
impact of European short-selling regulation mixed effects on markets.

只读了一遍。。什么都没看懂~~~明天再读个第二遍~~~~~~~~~~

slave918

T2 2:17
HOW：
at fisrt, you borrow some shares and reture this share when the prive decreased.
Why risky?
Since when you are a traditonal long investor, you only lost all your money invested.
However, doing short selling means there are no limitation.
T3 1:32
If the company don't own the stock you want to buy, you can short this stock.
T4 2:30
1.lost more
2.no avialable stocks.
3.chose company with good liquidity
4.put more money than buying stocks in account
5.when you encounter a margin call, either you can put more money or that postion will be closed.
T5 1:57
6.people may buy stocks like creazy.
7.buy to cover
8.use a stop loss when you are not in front of computer.
T6 1:15
9.have a plan which means you know your target price and when will you close your position.
10.before the ex dividend day, you should close your postion or you will pay the dicidend to who holds this stock.

annietea

第一次打卡。

Speed
1. 0' 44  112
2. 2'32   369
3. 2'19   264
4. 2'20   313
5. 2'16   324
6. 1'45   256

Obstacle
很不幸的，花了15'20，表示基本没有看懂整体意思，只能看懂局部。明天继续。

mozhiwanjia

TaoRs92 发表于 2014-8-29 13:09
Part III: Obstacle

Notes:

掌管 6        00:13:42.44        00:31:05.82
掌管 5        00:01:54.10        00:17:23.38
掌管 4        00:03:05.52        00:15:29.27
掌管 3        00:03:19.23        00:12:23.74
掌管 2        00:03:06.15        00:09:04.51
掌管 1        00:05:58.35        00:05:58.35
最后一篇基本看不懂什么意思....

chenxiaojing

00:47-112
02:20-369
I‘m back~~finally! thanks for sharing
01:41-264
introduction-definition-risk-few choice
02:07-313
01:48-324
01:46-256
11:54-1243 mixed effect-on all parts of market

洋沫沫

warm up: 1'05  112
2: 2'18  369
3: 1'50  264
4: 2'04  313
5: 2'11  324
6: 1'23  256
obstacle:11'24  1243
ESMA published a short selling regulation in 2012, and after implementing it for 2 years, they find some consequences.
the effects of the regulation on the market are mixed. and over all the regulation seems overdone.