16 July 2008

SEC Restricts Naked Short Selling

The SEC has just issued an emergency against naked short selling (Wiki has a good summary of what naked short selling is.)

It's in response to the plummeting Fannie Mae and Freddie Mac stock price, but it actually probably had very little to do with that drop, there are simply too many shares of the GSEs, though it can be devastating to small and micro cap companies.

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