SEC Takes Aim at Naked Short Selling
The Securities and Exchange Commission today announced new and stringent rules against the practice of “naked short selling”, a stripped-down version of short selling that some would say is an issue to most investors on Wall Street. Short selling, or “shorting”, is the selling of a security you do not own. The idea is to borrow a security, and then sell it, in anticipation that the price of the security will decrease. You can then later purchase the security at a lower price and return it. Instead of buying low and selling high, you are selling high and buying low.…