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.ABC News: SEC Bans Short-Selling of 799 Financial Stocks

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