"BEAR" SELLING.

Auckland Star, Volume LXXI, Issue 172, 22 July 1940, Page 4

"BEAR" SELLING.

AUSTRALIAN PROHIBITION

WARTIME PRECAUTIONS

Prohibition of "bear" selling has been enforced on the Australian StocK Exchangee. It was explained that the committee of the Sydney Stock Exchange has taken this step as a precautionary measure, though it is of the opinion that such operations have had little effect on trading prices in recent weeks. Genuine forward trading in the mining section is still permissible.

Wide powers were granted to the committee by members of the Sydney Stock Exchange shortly after the outbreak of the war, when it was resolved that the committee could take any action that it considered necessary for the control of business.

The chairman, Mr. E. G. Blackmore, said that, because of the gravity of the present situation, which had produced abnormal conditions, all "bear" operations would be prohibited until further notice.

"In taking this step," Mr. Blackmore added, "the committee, while convinced that up to the present there has been no appreciable 'bear' selling, feels that prohibition is desirable as a precautionary measure, and to reassure those members of the public who are not well informed as to the operations of the StocK Exchange. This, of course, covers ail arbitrage transactions, as well as all others in both the industrial and mining sections of the market." Mr. Blackmore added that similar prohibition was being enforced in the other States.