Hey guys, Can you please explain to me in layman terms what this new short sale rule by SEC is exactly? Thanks!!!
uh, you can’t short any of the 800+ stocks on the list.
The SEC imposed a ban on short-selling the stock of certain companies. I believe the list is around 800 companies (largely financials and insurance). It is to protect the value of the stock from being driven down by traders/investors/mm’s/etc who wish to take the opposite side of buying the stock. Instead of buying the underlying security (going long) in hopes of the value rising, people who think the value of the underlying security will fall “sell” the security (going short). I’m assuming you didn’t understand selling short???
Thanks so much! Well I understand shorting but what I read online was so complicated, I was confused. Thanks!