Saturday, July 19, 2008

SEC Short-Sale Rule Gets Negative Reviews -- WSJ

WASHINGTON -- The Securities and Exchange Commission's new rule designed to limit certain negative stock bets is set to start Monday. Already, a political backlash is brewing.

Last Tuesday, the SEC said it would tighten short-selling rules for 19 financial firms, including mortgage titans Fannie Mae and Freddie Mac, by requiring traders to "pre-borrow" stock before initiating a so-called short sale.
Financial Stocks Lift Market While Tech Shares Falter
Short-selling rule to exclude market makers

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