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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U.K. Financial Services Authority announced a similar ban on the same dayABC News: SEC Bans Short-Selling of 799 Financial Stocks
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A 30-day ban on short selling of stocks from 18 large banks was in effect earlier in the summerABC News: SEC Bans Short-Selling of 799 Financial Stocks
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John McCain criticized SEC and its chairman Christopher Cox the day before for failing to prevent speculators that "turn the market into a casino"New York Times: S.E.C. Temporarily Blocks Short Sales... (September 19, 2008)
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A larger rescue plan for the financial crisis would be finalized during the upcoming weekendABC News: SEC Bans Short-Selling of 799 Financial Stocks
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