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Clothing and Disclosing the Short: SEC Tightens Short-Selling Regulations

Author: Alexis B. Stokes.; Peter A. Stokes.

Source: Volume 22, Number 02, November/December 2008 , pp.5-8(4)

Journal of Taxation and Regulation of Financial Institutions

Abstract:

Regulators are increasingly concerned that practices by short sellers, including “naked” short sales and “short and distort” schemes, are undermining the stability of the nation’s stock markets and worsening the crisis afflicting the financial sector. In a flurry of activity during the financial crisis, the SEC finalized a number of proposals issued earlier, and took extraordinary measures to try to limit the damage the agency perceives arose from activities of short sellers.

Keywords: Short selling; Hard T+3; Rule 10b-21;

Affiliations: 1: Texas State University; 2: Fulbright & Jaworski LLP.