Trying to sort facts from fiction in the world of stocks
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SEC votes 3-2 for short-sale curbStory
Comments Screener (28) Alert Email Print ShareBy Kate Gibson NEW YORK (MarketWatch) -- A divided U.S. Securities and Exchange Commission on Wednesday voted to temporarily limit short sales after a yearlong debate on the contentious issue. The SEC's five commissioners voted 3-to-2 to curb short sales of a stock after it falls 10% in one day. "It is a rule that is designed to preserve investor confidence and promote market efficiency," said SEC Chairman Mary Schapiro, who backed the proposal. The SEC in early April approved the release of five differing proposals for reinstating the uptick rule, removed in 2007 after 70 years, which was designed to prevent short sellers from dominating trading in a stock to drive its price down.
SEC votes 3-2 for short-sale curbStory
Comments Screener (28) Alert Email Print ShareBy Kate Gibson NEW YORK (MarketWatch) -- A divided U.S. Securities and Exchange Commission on Wednesday voted to temporarily limit short sales after a yearlong debate on the contentious issue. The SEC's five commissioners voted 3-to-2 to curb short sales of a stock after it falls 10% in one day. "It is a rule that is designed to preserve investor confidence and promote market efficiency," said SEC Chairman Mary Schapiro, who backed the proposal. The SEC in early April approved the release of five differing proposals for reinstating the uptick rule, removed in 2007 after 70 years, which was designed to prevent short sellers from dominating trading in a stock to drive its price down.
SEC votes 3-2 for short-sale curbStory
Comments Screener (28) Alert Email Print ShareBy Kate Gibson NEW YORK (MarketWatch) -- A divided U.S. Securities and Exchange Commission on Wednesday voted to temporarily limit short sales after a yearlong debate on the contentious issue. The SEC's five commissioners voted 3-to-2 to curb short sales of a stock after it falls 10% in one day. "It is a rule that is designed to preserve investor confidence and promote market efficiency," said SEC Chairman Mary Schapiro, who backed the proposal. The SEC in early April approved the release of five differing proposals for reinstating the uptick rule, removed in 2007 after 70 years, which was designed to prevent short sellers from dominating trading in a stock to drive its price down.
In other company news one of the two stainless steel merger candidates will be announced later this week on IR company web site section "CLIENT SUPPORT" TAB http://www.minamargroup.net/ or this direct link http://minamarmarketinggroup.helpserve.com/ or Pink Sheets filing service.
This could be a HUGE deal people...Hold your shares..IMO
MM Games may be over - Securities regulators are considering new short-sale restrictions with no exemptions for market makers, people familiar with the regulators' plans said on Tuesday.
The Securities and Exchange Commission is due to meet on Wednesday to vote on rules that would restrict short-selling in a company's stock if that stock fell by more than a certain percentage, such as 10 percent, the sources said.
The SEC is considering allowing legitimate hedging during the short-sale curb but no general exemption for market makers, the sources said.
The SEC was not immediately available for comment.
Short-sellers bet on a stock's decline. In a short-sale, an investor borrows stock and sells it in the hope that its price will drop. When it does, the seller profits by buying back the stock at the lower price and returning the borrowed shares.
During the financial crisis, lawmakers and corporate executives had urged the SEC to reinstate a Depression-era rule known as the 'uptick rule' to help slow the downward pressure on stocks.
Now the SEC is expected to consider a "circuit breaker" measure that would trigger a version of the uptick rule, the sources said.
The rule would only allow short-selling above the national best bid for the stock and would last for the day that the stock dropped and the day after, the sources said.
The sources requested anonymity because the SEC rule is still in flux and could change before Wednesday's meeting.
WASHINGTON (Reuters) - Securities regulators are considering new short-sale restrictions with no exemptions for market makers, people familiar with the regulators' plans said on Tuesday.
The Securities and Exchange Commission is due to meet on Wednesday to vote on rules that would restrict short-selling in a company's stock if that stock fell by more than a certain percentage, such as 10 percent, the sources said.
The SEC is considering allowing legitimate hedging during the short-sale curb but no general exemption for market makers, the sources said.
The SEC was not immediately available for comment.
Short-sellers bet on a stock's decline. In a short-sale, an investor borrows stock and sells it in the hope that its price will drop. When it does, the seller profits by buying back the stock at the lower price and returning the borrowed shares.
During the financial crisis, lawmakers and corporate executives had urged the SEC to reinstate a Depression-era rule known as the 'uptick rule' to help slow the downward pressure on stocks.
Now the SEC is expected to consider a "circuit breaker" measure that would trigger a version of the uptick rule, the sources said.
The rule would only allow short-selling above the national best bid for the stock and would last for the day that the stock dropped and the day after, the sources said.
The sources requested anonymity because the SEC rule is still in flux and could change before Wednesday's meeting.
WASHINGTON -- The U.S. Securities and Exchange Commission is set to vote Wednesday on a final rule that will curb short selling for individual securities that experience declines of at least 10% in a single day.
The vote will bring an end to almost a year of debate over the practice, in which investors attempt to profit by selling borrowed shares of a stock that is losing value. For falling stocks, the rule will allow short selling only if the price of the security is above the current national best bid.
The price test would be triggered for a security any day in which its price declines by 10% or more from the prior day's closing price, according to an SEC summary of the proposal. The restriction would apply to short sale orders in that security for the remainder of the day as well as the following day.
Short-selling has come under fire from lawmakers and other policy makers in the wake of recent economic turmoil, although its defenders say they are the victims of political rhetoric.
The SEC asked for comments on whether it should reinstate a short-selling restriction known as the "uptick" rule, in which investors can only short a stock after it rises, or ticks higher. Regulators and industry insiders agree that the previous uptick rule isn't workable with current lightening-fast computer-generated trades.
From the SEC's perspective, new rules that curb short selling in a manner that keeps investors from abusively driving down stock values will help investor confidence.
"In arriving at the rule we are considering, the commission was cognizant of the benefits that short selling can provide to the markets," said SEC Chairman Mary Schapiro.
"However, we also are concerned that excessive downward price pressure on individual securities, accompanied by the fear of unconstrained short selling, can destabilize our markets and undermine investor confidence in our markets," Ms. Schapiro said.
The industry won't be pleased with new rules. Goldman Sachs & Co.'s head of U.S. Equity Trading Paul Russo said in a letter to the SEC that a short sale price test "will harm market efficiency and liquidity and will not be effective in further safeguarding the market against abusive short sellng."
A spokesman for the Coalition of Private Investment Companies, a group of private investment companies, said the SEC's action will "likely harm investors' interests by raising transaction costs, reducing market quality, and undermining confidence in the markets' ability to determine prices fairly and efficiently."
The rule generally would apply to all equity securities that are listed on a national securities exchange, whether traded on an exchange or in the over-the-counter market.
We will close green today...IMO
Agreed, MM's are slowly shacking the trees to cover. It needs to be walked back up, or wee need news to shake it up a bit.
Get em cheap! SEC may make new short selling rules today! PPS may explode with investor confidence in new shorting rules.
Get em cheap! SEC may make new short selling rules today! PPS may explode with investor confidence in new shorting rules.
We may see 100% + today!
I believe Toucan is correct and we will know soon, rumor is around 60 mil company.
Get em cheap! SEC may make new short selling rules today! PPS may explode with investor confidence in new shorting rules.
SEC poised to adopt curbs on short-selling after long study; bid to prevent market turmoil
By Associated Press
4:41 AM PST, February 24, 2010
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WASHINGTON (AP) — Federal regulators are poised to rein in the practice of short-selling, restoring Depression-era restraints, in a bid to prevent stock-selling sprees that feed on themselves and can heighten market turmoil.
The Securities and Exchange Commission is scheduled to vote Wednesday at a public meeting to adopt new rules, following months of consideration by the commissioners. The SEC asked for public comment last April on several alternative approaches to restraining short-selling, and a bipartisan group of senators have been pushing the agency to act or face legislation.
The meeting begins at 10:00 a.m. EST.
The commissioners are expected to adopt a so-called circuit breaker for stock prices, restricting short-selling of an extremely fast-dropping stock for the rest of a trading session based on its highest bid.
Short-sellers bet against a stock, in a practice that is legal and widely used on Wall Street. They generally borrow a company's shares, sell them, and then buy them when the stock falls and return them to the lender — pocketing the difference in price.
In July 2007, when the stock market was near its peak, the SEC abolished a 70-year-old uptick rule, put in during the Depression that followed the 1929 market crash that allowed short-sellers to come in only at a price above the highest current bid for the stock. Investor confidence was shaken as the market plunged in the fall of 2008 and proponents of restoring restraints said they were needed to prevent abusive trading. They maintained that the absence of the rule fanned market volatility, prompting bands of hedge funds and other aggressive investors to target weak companies with an avalanche of short-selling.
But opponents said new restrictions could eliminate the benefits of short-selling — bringing capital into the markets and accurate stock prices to the surface — and actually hurt investor confidence.
Last July, the SEC made permanent an emergency rule enacted at the height of the fall 2008 tumult that targets so-called "naked" short-selling — when sellers don't even borrow the shares before selling them, and look to cover positions after the sale.
The SEC rule includes a requirement that brokers must promptly buy or borrow securities to deliver on a short sale.
Brokers acting for short-sellers must find a party believed to be able to deliver the shares within three days after the short-sale trade. If the shares aren't delivered within that time, there is deemed to be a "failure to deliver." Brokers can be subject to penalties if the failure to deliver isn't resolved by the start of trading on the following day.
I hope they do it and stop the games....We may see much higher PPS on many of these penny plays.
Loading more here today..
Agreed, $1.00 soon, market will correct...imo
I am not selling any of my position anytime soon.
I have heard the same around 60 mil, not sure where that would put the PPS on this but I am sure it would be higher...lol
I like a bigger profit, but thanks...lol, I am buying at these levels and holding...GLTY
Dollar land coming back in my opinion, we are on a major bounce here and this will correct itself soon. imo
Agreed, another 100% day coming soon...imo
Merger news coming IMO...60 Mil dollar company??....We will see..
No worries here, holding & adding more..
Great entry point, I will be adding in the morning before any news hits this week.
MM's covered a lot of shorts today I'll bet....IMO
Panic Selling at it's best, Many will buy back in this week.
Holding strong...MOASS coming this week.
VCTY & UWRL falling Together...OUCH!!!
Maybe the train is getting ready to leave the station....MOASS Soon...
MOASS Pleeease! Pretty Please with sugar on top...lol
We need that VCTY action they got yesterday over here....
Huge shorting going on here...imo, Hold for the cover...LOL
MOASS coming!
Holding strong! this will be a great week....!
LOL...Like I said BROKE with no outlook for any revenue in 2010 per their 10q....GLTA...
I think I am adding again today...Run is close at hand.
Thank You...Can't wait to buy in today.
Looks like pennyland is coming fast with this one..imo