Short Selling Ban
The U.S. Securities and Exchange Commission banned short selling on 799 different stocks on September 19, 2008. The ban was announced on the agency's Web site. Short selling is the borrowing of stocks for a small fee with the purpose of selling them, buying the stocks again when their value goes down, making a profit on the price difference, and then return them to the owner. Some believe the act was one reason for the escalating financial crisis, especially the recent failure of several banks.1
Fast Facts
- On stocks in financial companies1
- A temporary measure1
- U.K. Financial Services Authority announced a similar ban on the same day1
- A 30-day ban on short selling of stocks from 18 large banks was in effect earlier in the summer1
- John McCain criticized SEC and its chairman Christopher Cox the day before for failing to prevent speculators that "turn the market into a casino"2
- A larger rescue plan for the financial crisis would be finalized during the upcoming weekend1
Latest News on the Financial Crisis
Treasury Department investing $250 billion in banks
$700B bailout bill passes Congress
FDIC recommends hike
Bailout bill text
Emergency Economic Stabilization Act of 2008
Related Pages on Mahalo
SEC | SHO List | Stock Market | Fannie And Freddie Bailout | Lehman Bankruptcy | Merrill Lynch | John McCain | The Great Depression | Christopher Cox | [[ John McCain Christopher Cox
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