SEC: Short-selling rule adopted
The SEC last week adopted a rule that affects short-selling of stocks.
The SEC last week adopted a rule that affects short-selling of stocks. Intended to promote market stability, the so-called uptick rule imposes a circuit breaker that would be triggered for any security that drops in price by 10% or more from the prior day’s closing price. Once the circuit breaker is triggered, short sales would be restricted. The rule will take effect 60 days after its publication in the Federal Register; market participants will then have six months to comply. For more details, click here.
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