Regulation of Naked Short Selling

Author / Creator

Library of Congress. Congressional Research Service

Available as

Online

Summary

Examines SEC regulation of short selling, which involves the sale of securities by investors who sell at current prices shares of stock that are borrowed from the broker and which they expect to su...

Examines SEC regulation of short selling, which involves the sale of securities by investors who sell at current prices shares of stock that are borrowed from the broker and which they expect to subsequently purchase at a lower price. Analyzes effectiveness of SEC regulations involving "naked short selling", wherein the broker does not borrow the required shares to deliver to the buyer, leaving the short seller in a "naked" position.

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