Tuesday, July 15, 2008

SEC cracks down on Naked Short Selling

SEC issues emergency rule to curb short sales

"The agency's rule change would prevent investors from making "naked" short sales of the biggest financial stocks. A "naked" short sale occurs when an investor sells stock that has not yet been borrowed."

Naked short selling is already illegal, so essentially, the SEC is saying, STOP shorting financials or else the US financial system is going to crash.

"The rule will go into effect on Monday, July 21, and last through July 29, although it could be extended to last up to 30 days. The SEC said it will consider rules to address short selling issues across the entire stock market."

Of course- After OPEX the SEC will enforce the naked short selling crack down, a rule that has already long been in place.

Of all the stocks I thought I would see on there was Washington Mutual, but No.
Alas, Goldman Sachs is on the list, and it isn't even that far down relative to the other companies. Expect GS to rally when this is all said in done.


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