Allegedly the announcement that the "uptick" rule is to be restored helped spur today's rally
CNBC: Uptick Rule on Shorting Stocks Expected to Be Restored
The uptick rule allows short sales only when the last sale price was higher than the previous price.Short selling -
The rule was first adopted in 1934...
The rule was repealed in June 2007.
In finance, short selling or "shorting" is the practice of selling a financial instrument that the seller does not own at the time of the sale. Short selling is done with the intent of later purchasing the financial instrument at a lower price. Short-sellers attempt to profit from an expected decline in the price of a financial instrument.One can see that with the market in a period of consistent decline that short selling would be a very profitable situation. One might also see that the short seller would want to see declines. So the short seller would like market instability, good for them bad for everyone else in the world. One might also conjecture that the repeal of the uptick rule prior to the incoming recession could, operative word is could, be a gift to the short seller.
The rule was repealed under the Bush administration, operative word is Bush.
2 comments:
It's about time! Why did it take so long to put this common sense rule back. The shorts were teaming up to target certain stocks like wolves. Another rule change by the GOP and Wall st. Dems. that has backfired big time.
This is a major major scam and it appears to be another leg of the Bush administration. That man is a walking nightmare. He has screwed this country so badly and he walks away with a smile, unbelievable.
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