Short selling restarts on Oct. 2 (companies, financial, stocks, sales)

[Lulu101]

Does anyone have an idea of what effect that will have?

[bentlebee]

What do you mean with short selling restarts on Oct. 2?

[Freebird2007]

there was a 10 day ban of shorts

[bentlebee]

So nobody can file a new short sale or close on a new short sale? Is there still a ban?

[Lulu101]

yes, the gov't banned it temporarily. It helped the market, but it also means teh stocks aren't being valued correctly (until it's allowed again)

Originally Posted by bentlebee

So nobody can file a new short sale or close on a new short sale? Is there still a ban?

[StillwaterTownie]

The short ban is only on financial companies.

[Freebird2007]

Originally Posted by bentlebee

So nobody can file a new short sale or close on a new short sale? Is there still a ban?

this is for stocks btw


you cannot short new shares. you can still close

[davidt1]

12 more companies were added to the ban list today including IBM and H&R Block. This is a big surprise and concern, as IBM has never been an attractive short target because it has been an emblem of strength, innovation and stability for decades. Over the years, other iconic companies have come and gone, but IBM weathered the storms like no others.

The question is why non-financial companies, and particularly why IBM? Does the SEC know something we don't? Or are they just being in general protectionist mode and IBM being an important company is as good as any to be on the list?

[Drover]

Can someone explain to me the thought process behind banning short sales? What is this supposed to accomplish?

[Lulu101]

who on this forum does shorts?