{
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      "id": 351180,
      "date": "2009-07-31",
      "retrieved": "2016-04-07T02:21:19.629689",
      "title": "Regulation of Naked Short Selling",
      "summary": "Short sellers borrow stock, sell it, and hope to profit if they can buy back the same number of shares later at a lower price. A short sale is a bet that a stock\u2019s price will fall. A short sale is said to be \u201cnaked\u201d if the broker does not in fact borrow shares to deliver to the buyer. When executed on a large scale, naked short sales can constitute a large portion of total shares outstanding, and can put serious downward pressure on a stock\u2019s price. Critics of the practice characterize it as a form of illegal price manipulation. The Securities and Exchange Commission (SEC) in 2004 adopted Regulation SHO, a set of rules designed to control short selling abuses, focusing on small-capitalization stocks where the number of shares held by the public was relatively small. \nUntil the current financial crisis, the SEC did not view short selling of large, blue-chip stocks as a problem. In July 2008, however, the SEC temporarily banned naked short sales of the stock of Fannie Mae, Freddie Mac, and 17 other large financial institutions. On September 18, 2008, the SEC banned all short selling of the shares of more than 700 financial companies in an emergency action that expired on October 8, 2008. On October 1, 2008, the SEC adopted an interim rule requiring short sellers\u2019 brokers to actually borrow shares to deliver to buyers, within one day after the expiration the normal three-day settlement time frame. The rule was made permanent on July 27, 2009, and it applies to all stocks. This report will be updated as events warrant.",
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      "id": "RS22099_2008Oct30",
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    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metacrs9568/",
      "id": "RS22099 2006-10-03",
      "date": "2006-10-03",
      "retrieved": "2006-12-06T17:01:56",
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      "id": "RS22099 2005-03-30",
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      "title": "Regulation of Naked Short Selling",
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