Thursday, November 06, 2008

Naked Short Selling Is Said to Decline - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times

To quote Paul Harvey, "Not why nor how.... "

Naked Short Selling Is Said to Decline - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times:
"According to data from three exchanges — including publicly available figures from the Nasdaq stock market — the number of stocks on the naked short-selling watch lists has fallen dramatically. The Nasdaq, for example, has just 56 stocks on its list, down from about 500 in September....Naked short selling, long a controversial practice, is a variant on short selling, which is legal. That involves borrowing stocks and selling them, hoping to buy them back at a lower price and profiting from the shares prices’ decline. In naked shorting, however, the investor doesn’t borrow the shares first."
not sure if the SEC crackdown or the falling prices and increased volatility was the cause.

FWIW this is included because it came up in conversation in class yesterday.

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