16 September 2008
Cows, Barn Doors, and the SEC
We now have a report that the SEC will be taking actions to restrict naked short selling. (primer on the practice here)
Of course, they are a bigger problem with small stocks, where someone can naked short shares in a micro cap, and drive the price down, because the stocks that they are selling dwarf the total volume of trading, but the SEC only noticed it when it affected the big guys.
Of course, they are a bigger problem with small stocks, where someone can naked short shares in a micro cap, and drive the price down, because the stocks that they are selling dwarf the total volume of trading, but the SEC only noticed it when it affected the big guys.
Labels:
Finance
,
regulation
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