Summary Box: SEC puts new ‘circuit breaker’ curbs on short-selling
By APWednesday, February 24, 2010
Summary Box: SEC curbs short-selling
WHAT THE REGULATORS DID: The Securities and Exchange Commission imposed new curbs on short-selling, or betting against a stock.
WHY IT MATTERS: Advocates of restraints on short-selling blame “bear raids” by sellers for pushing several big companies toward collapse and worsening the market’s downturn in fall 2008.
NEW CURBS: The SEC put in a “circuit breaker” for stock prices, restricting short-selling of a stock that has dropped 10 percent or more for the rest of a trading session and the next one.
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