I have decided to do my final year thesis on short selling and its impact on global markets and currently trying to build a very basic plan of what I want to include in it. So far I have managed the following:
Principles of short selling. History of it? what is it? how does it work?
Who short sales? (what type of people) e.g hedge funds, pension funds, market makers, average joe.
Different ways of conducting a short sale e.g: naked short,futures forwards options, CFDs, spread bets, credit default swaps.
Why do these people short sale? rational behind it
Benefits of short selling
What are the risks of it?
Controversy behind short selling:
How is it perceived by the media
How short selling participated in financial crash 2008 and whether it had an impact on Euro crisis
Government's view of short selling.
Short selling bans.
What affect did the bans actually have? Has it had different effects on countries.
Regulation: What has been implemented and what will be now/in future
Will it make a difference?
How short selling has effected equity and stock market
How has short selling activity impacted market volume and stock volatility
I am also trying to also think of what I want my main hypothesis to be but have a mind block at the moment! So any feedback or tips would be much appreciated!