Washington, D.C., Sept. 17, 2008 — The Securities and Exchange Commission today took several coordinated actions to strengthen investor protections against “naked” short selling. The Commission’s actions will apply to the securities of all public companies, including all companies in the financial sector. The actions are effective at 12:01 a.m. ET on Thursday, Sept. 18, 2008.
Tiger...The rule went in to effect before the open, and I think you mean no more illegal naked shorts are allowed. This is the best news all of us that play in the penny market could have gotten, and it's ABOUT TIME!!!!!
It only took the SEC 74 years to ban this evil practice that so many dastardly crooks have been using to manipulate the markets. This should have a big impact on pennies. I think naked shorting has probably been more pervasive in this market than it has been in the others. The offshore criminals and hedgies etc. etc. just love (loved) to crash these stocks down to nothing.
It's too late for some small companies that have already been driven out of business because of this problem. But maybe these struggling businesses will stand a fighting chance to make it now that their stocks can't be illegally shorted in to oblivion.
The effects of this new law should start showing up all over the place. I don't what the percentage is of penny stocks that have had naked shorts on them but it's pretty high.
Maybe the firms that have been naked shorting these stocks will experience some serious financial burden while they clean up their short positions just like the companies that they illegally shorted did!!!!!!!!!!!!
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