SEC: Short-selling rule adopted
Regulators adopted a rule recently that affects short selling of stocks.
Regulators adopted a rule recently 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 whose price dropped by 10% or more from the prior day’s closing price. Once the circuit breaker were triggered, short sales would be restricted. The rule takes effect May 10; market participants have until Nov. 10 to comply. For more details, click here.
