Discuss the benefits and risks of buying on margin and short selling, both for market participants and the effect on the market as a whole. Consider problems of market efficiency and ethical constrains as well.

Benefits and risks of buying on margin and short selling

Benefits and risks of buying on margin and short selling, both for market participants and the effect on the market as a whole.

Discuss the benefits and risks of buying on margin and short selling, both for market participants and the effect on the market as a whole. Consider problems of market efficiency and ethical constrains as well.

Resort to the Excel spreadsheet examples (included in the textbook, Ch3) and support your statements with numerical explanations derived from the available examples.

Refer to the peer-reviewed journal papers to provide thorough inside into the problems discussed. Relate the Controversy over Buying on Margin and Short Sale to the CFA Code of Ethics and Standards of Professional Conduct.