Americans 4 "No Own - No Sell" Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Americans 4 "No Own - No Sell"

Public Reply Prvt Reply Mark as Last Read File

Next 10PreviousNext

To: Ga Bard who started this subject	9/30/2001 2:05:12 PM
From: Ga Bard	of 455

Short Sale Restrictions A short sale is generally a sale of stock by an investor who does not actually own the stock. The SEC, the New York Stock Exchange, and the National Association of Securities Dealers, Inc. (NASD) place restrictions when investors want to sell short. Their rules prevent investors from selling short unless the last trade of the stock is at the same or higher price—in other words, investors can’t sell short in a declining market. These restrictions aim to stop continuous short selling that would exacerbate a falling stock price. The SEC also has a rule that prohibits short-sellers from manipulating a securities offering. The rules investors must follow are: Exchange-Listed Stocks Rule 10a-1 of the Securities Exchange Act, known as the uptick rule, seeks to limit short selling in a declining market. The rule prohibits investors from selling an exchange-listed stock short unless the stock's last trade was at the same price or higher than the previous trade. New York Stock Exchange applies a similar rule—Rule 440B—to its member brokerage firms and to its specialists. In addition, Rule 10a-2 of the Securities Exchange Act requires brokerage firms that sell a stock short or allow their customers to sell short to first make sure that the shares can be borrowed or that delivery of the securities can be made to the purchaser by the settlement date. Nasdaq Stock Market Stocks NASD Rule 3350 prohibits NASD members from short selling in Nasdaq Stock Market stocks at or below the inside best bid when the best bid is below the previous inside best bid for that stock. The inside best bid is the highest bid by all market makers quoting a particular stock. Stocks in a Securities Offering Rule 105 of Regulation M seeks to prevent short sellers from manipulating securities offerings. The Rule prohibits the covering of short sales with securities obtained from an underwriter, broker, or dealer that is participating in the securities offering. Short sellers want these restrictions lifted. P2bAAAT & DSAS Gary

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Next 10PreviousNext