Medici

Short Sales: SEC Turns Back the Clock to 1931

Naked Short Selling as it is called has always been illegal, this will be a BOOM for clearing firms Stock Locate Dept. with borrowing stocks short interest premiums. A hard locate simply means that the "shorter" has to now have the shares of a stock they are shorting, solidly borrowed with interest paid to the lender of the shares, rather than a "best effort" with no interest paid to the specific shareholder. The interesting things are that the Bank Shares have NOT eliminated there dividend as expected and many people shorting at the currently low multiples and share prices also have to pay the dividend to the lending shareholder, and eventual deterent-