Mainer

What the SEC Really Accomplished with Its New 'Short-Sell' Rule

"Short sellers sell borrowed shares which they hope to replace later at lower prices, profiting from stock price declines. The practice is legal, but has long been controversial. The SEC has put restrictions in place in recent years to curb abusive "naked" short sales, in which stocks are not borrowed before short sales. That effort was extended with the emergency order, which calls for borrowing or arranging to borrow shares in advance of short sales in the 19 targeted stocks." Again, they are NOT outlawing shorting, simply requiring that shares be located before doing so, to curb abuse.

money.cnn.com/news/new...

What the SEC Really Accomplished with Its New 'Short-Sell' Rule

This article is completely incorrect. The SEC has taken steps to limit "naked" short selling, which is illegal. Shorting these 19 stocks is still allowed, however the shares to short need to be borrowed first. These regs should be extended to all stocks, and Cox has indicated this may happen. Shorting is completely legitimate, legal and a necessary activity, IMO, but naked short selling leads to abusive practices and manipulation, and in its worst form leads to the counterfeiting of shares when more shares are shorted than can be borrowed or in some cases even exist.