If the fundamental price is truly 20 percent below the previous closing while the rule discourages short selling after a 10 percent drop, buyers at that price may end up losing 10 percent of their investment.
The leading opinion is that restricting short selling in any form will hurt price discovery and liquidity resulting from short selling.
ASIC also encourages short sellers and system developers to continue to monitor ASIC Information Sheet 98 Short selling
, which includes key tasks and practical information they must be aware of prior to the start date for the new reporting requirements.
net is a service designed to combat short selling
and naked short selling
in US stocks.
The Company is committed to providing its shareholders with credible information on all matters material to its business practices, including non speculative short selling
information we are able to obtain.
Cameron Funkhouser, NASD's senior vice president of market regulations, told the forum that NASD had found no evidence of rampant naked short selling
29, 2003, by implementing a new rule to ban naked shorting in order to protect thinly traded stocks that are vulnerable to aggressive short selling
which would cause the stock price to fall.
While short selling
may be the industry's dirty little secret this company will not stand by and watch its hard work and earnest efforts to build a legitimate business get destroyed," said IBAC President Edward W.
We have confidence that our regulators, who carefully review our activities, understand that short selling
is a trading strategy and is not related to the post-trade clearance and settlement process.
The regulation and associated list aims at modernizing rules on short selling
by addressing a primary symptom of naked short selling
which involves a brokerage firm's failure to deliver stock on the settlement date.
These listings may be part of an effort by stock traders to avoid recently enacted SEC restrictions prohibiting "naked short selling
PHOENIX -- According to This List, Fewer Than 3% of Listed Public Companies in the US Are Affected by Excessive Failed Delivery of Securities Associated with Naked Short Selling