Saturday, June 16, 2007

SEC allows short sales after down-tick, and vows to stop naked short selling

I don't know what the effect of either will be! The old rule barring short selling after a down-tick was of limited effect, that's for sure. You just had to create an up-tick first. It's the naked short selling that's got to be shut down. Chairman Cox called it "a fraud that the commission is bound to prevent and to punish." The linked article discusses the ludicrous situation of, on the Regulation SHO list of stocks with heavy 'fails to deliver' for 538 days. Good grief.

SEC ends decades-old price limits on short selling - International Herald Tribune



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