Short sale ban did not work

October 2008
Las Vegas Business Press (10712186);10/27/2008, Vol. 25 Issue 43, p26
The author reflects on a ban on short selling of stocks instigated by the U.S. Securities & Exchange Commission (SEC) on September 8, 2008 and has expired on October 8. According to him, the ban was originally implemented to protect plunges in financial stocks but soon extended to include protection on companies such as Sears Holdings and Hertz. Furthermore, Nasdaq chief economist Frank Hatheway conducted a study on the ban and found that it failed to restore the stability in the U.S. financial market and did not support prices.


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