Regulation of Naked Short Selling

Regulation of Naked Short Selling
Author:
Publisher:
Total Pages: 0
Release: 2005
Genre:
ISBN:

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. In effect, a short sale is a bet that a stock's price will fall. A short sale is said to be "naked" if the broker does not in fact borrow shares to deliver to the buyer. When executed on a large scale, naked short sales can equal a large portion of total shares outstanding, and can put serious downward pressure on a stock's price. Critics of the practice characterize it as a form of illegal price manipulation. The Securities and Exchange Commission (SEC) recently adopted rules designed to control short selling abuses, but calls for further restrictions on the practice continue. This report describes the mechanics of short selling, summarizes the new SEC rule, and analyzes the impact of short selling in the marketplace. It will be updated if events warrant.

Naked, Short and Greedy

Naked, Short and Greedy
Author: Susanne Trimbath
Publisher: Spiramus Press Ltd
Total Pages: 372
Release: 2019-12-02
Genre: Business & Economics
ISBN: 1910151831

Rigged financial markets and hopeless under-regulation on Wall Street are not new problems. In this book, Susanne Trimbath gives a sobering account of naked short selling, the failure to settle, and her efforts over decades, trying to get this fixed. Twenty-five years ago, Trimbath was working “backstage at Wall Street” when a group of corporate trust specialists told her about a problem in shareholder voting rights. When she went to senior management at Depository Trust Company (DTC), then and still the largest securities depository in the world, they brushed it off saying, “You can’t balance the world.” Ten years later, a lawyer from Texas would tell her that the same problem was about to blow up the financial markets: Wall Street brokers are using short sales and fails to deliver to grab the assets of American entrepreneurs. This is a cautionary tale. What started as a regulatory failure turned into a regulatory crisis. Shareholder democracy is in shambles. The institutions that were established to correct a problem of trade settlement failures have instead exacerbated the problem. Global financial markets may not survive what comes next.

Practices Related to Naked Short Selling Complaints and Referrals

Practices Related to Naked Short Selling Complaints and Referrals
Author: H. David Kotz
Publisher: DIANE Publishing
Total Pages: 55
Release: 2010-06
Genre: Business & Economics
ISBN: 1437921760

Final report on an audit conducted by the SEC detailing the results of the audit on the Div. of Enforcement¿s (DE) policies, procedures, and practices for processing complaints about ¿naked short selling.¿ Naked short selling (i.e., intentionally failing to borrow and deliver shares sold short in order to drive down the stock price) violates the fed. securities laws. Numerous complaints, particularly since Dec. 2007, alleged that the DE failed to take sufficient action regarding naked short selling, causing investors and companies to lose billions of dollars. This audit examined DE¿s general complaint receipt and processing procedures as they applied to the receipt and referral of naked short selling complaints. Includes recommendations.

Naked Short Selling Antifraud Rule (Us Securities and Exchange Commission Regulation) (Sec) (2018 Edition)

Naked Short Selling Antifraud Rule (Us Securities and Exchange Commission Regulation) (Sec) (2018 Edition)
Author: The Law Library
Publisher: Independently Published
Total Pages: 32
Release: 2019-01-17
Genre: Law
ISBN: 9781794284333

The Law Library presents the complete text of the Naked Short Selling Antifraud Rule (US Securities and Exchange Commission Regulation) (SEC) (2018 Edition). Updated as of May 29, 2018 The Securities and Exchange Commission ("Commission") is adopting an antifraud rule under the Securities Exchange Act of 1934 ("Exchange Act") to address fails to deliver securities that have been associated with "naked" short selling. The rule will further evidence the liability of short sellers, including broker-dealers acting for their own accounts, who deceive specified persons about their intention or ability to deliver securities in time for settlement (including persons that deceive their broker-dealer about their locate source or ownership of shares) and that fail to deliver securities by settlement date. This ebook contains: - The complete text of the Naked Short Selling Antifraud Rule (US Securities and Exchange Commission Regulation) (SEC) (2018 Edition) - A dynamic table of content linking to each section - A table of contents in introduction presenting a general overview of the structure

Short-selling Activity in the Stock Market

Short-selling Activity in the Stock Market
Author: United States. Congress. House. Committee on Government Operations. Commerce, Consumer, and Monetary Affairs Subcommittee
Publisher:
Total Pages: 1358
Release: 1991
Genre: Consumer protection
ISBN:

The World's First Stock Exchange

The World's First Stock Exchange
Author: Lodewijk Petram
Publisher: Columbia University Press
Total Pages: 305
Release: 2014-05-27
Genre: Business & Economics
ISBN: 0231537328

This account of the sophisticated financial hub that was 17th-century Amsterdam “does a fine job of bringing history to life” (Library Journal). The launch of the Dutch East India Company in 1602 initiated Amsterdam’s transformation from a regional market town into a dominant financial center. The Company introduced easily transferable shares, and within days buyers had begun to trade them. Soon the public was engaging in a variety of complex transactions, including forwards, futures, options, and bear raids, and by 1680 the techniques deployed in the Amsterdam market were as sophisticated as any we practice today. Lodewijk Petram’s award-winning history demystifies financial instruments by linking today’s products to yesterday’s innovations, tying the market’s operation to the behavior of individuals and the workings of the world around them. Traveling back in time, Petram visits the harbor and other places where merchants met to strike deals. He bears witness to the goings-on at a notary’s office and sits in on the consequential proceedings of a courtroom. He describes in detail the main players, investors, shady characters, speculators, and domestic servants and other ordinary folk, who all played a role in the development of the market and its crises. His history clarifies concerns that investors still struggle with today—such as fraud, the value of information, trust and the place of honor, managing diverging expectations, and balancing risk—and does so in a way that is vivid, relatable, and critical to understanding our contemporary world.

Secret Weapon

Secret Weapon
Author: Kevin D. Freeman
Publisher: Simon and Schuster
Total Pages: 304
Release: 2012-01-16
Genre: Political Science
ISBN: 1596983116

A New York Times bestseller! Who’s really to blame for America’s catastrophic financial meltdown and devastating national recession? Contrary to what the “Occupy Movement” might tell you, it’s not just greedy Wall Street executives (though they certainly earned their share of scorn). It’s not just failed regulation (even though Washington has failed miserably, both Republicans and Democrats, to protect us). As one of America’s top financial professionals reveals in this shocking new book, the failures of Wall Street and Washington have opened us up to economic warfare, with our foreign enemies exploiting our lurking financial weaknesses. In Secret Weapon, Kevin D. Freeman unveils how all the evidence—including motive, means, and opportunity—points to America’s foreign enemies as deliberately pushing our economy over the brink.

Don't Blame the Shorts: Why Short Sellers Are Always Blamed for Market Crashes and How History Is Repeating Itself

Don't Blame the Shorts: Why Short Sellers Are Always Blamed for Market Crashes and How History Is Repeating Itself
Author: Robert Sloan
Publisher: McGraw Hill Professional
Total Pages: 272
Release: 2009-12-04
Genre: Business & Economics
ISBN: 0071636870

Why Main Street blames financial speculation for economic crashes Disdain for short selling is as American as apple pie, dating back to our nation’s founding. But as Bob Sloan argues in Don’t Blame the Shorts, short selling lies at the heart of every Wall Street transaction and fuels the financial system. Sloan explains that without shorting, credit in high-yield, distressed, convertible bonds and equities vanishes, thus choking economic activity. This eye-opening look at short selling in America provides new insight into our hostile relationship with shorting—a relationship that turns out to be unhealthy and counterproductive.

The Art of Short Selling

The Art of Short Selling
Author: Kathryn F. Staley
Publisher: John Wiley & Sons
Total Pages: 311
Release: 1996-12-23
Genre: Business & Economics
ISBN: 0471146323

A one-of-a-kind book that shows you how to cash in on the latestinvesting trend--short selling "The Art of Short Selling is the best description of this difficulttechnique."--John Train, Train, Thomas, Smith Investment Counsel,and author of The New Money Masters "Kathryn Staley has done a masterful job explaining the highlyspecialized art of short selling. Her approach to telling the truestories of famous investment 'scams' will keep the readerspellbound, while teaching the investor many cruciallessons."--David W. Tice, Portfolio Manager, Prudent BearFund "Selling short is still a misunderstood discipline, but even themost raging bull needs to know this valuable technique to masterthe ever-changing markets."--Jim Rogers, author, InvestmentBiker On the investment playing field, there is perhaps no game moreexciting than short selling. With the right moves, it can yieldhigh returns; one misstep, however, can have disastrousconsequences. Despite the risk, a growing number of players areanteing up, sparked in part by success stories such as that ofGeorge Soros and the billions he netted by short selling theBritish pound. In The Art of Short Selling, Kathryn Staley, anexpert in the field, examines the essentials of this importantinvestment vehicle, providing a comprehensive game plan with whichyou can effectively play--and win--the short selling game. Whether used as a means of hedging bets, decreasing the volatilityof total returns, or improving returns, short selling must behandled with care--and with the right know-how. As Staley pointsout, "Short selling is not for the faint of heart. If a stock movesagainst the position holder, the effect on a portfolio and networth can be devastating. Investors need to understand the impacton their accounts as well as the consequences of getting bought inbefore they indulge in short selling." The Art of Short Sellingguides you--clearly and concisely--through the ins and outs of thishigh-risk, high-stakes game. The first--and most important--move in selling short is to identifyflaws in a business before its share prices drop. To help youtackle this key step, Staley shows you how to evaluate companyfinancial statements and balance sheets, make sense of returnratios, detect inconsistencies in inventory, and analyze thestatement of cash flows. Through real-world examples thatillustrate the shorting of bubble, high multiple growth, and themestocks, you'll proceed step by step through the complete processand learn to carry out all the essentials for a successful shortsell, including quantifying the risk factor and orchestratingcorrect timing, as well as implementing advanced valuationtechniques to execute the sell/buy. Packed with landmark, cutting-edge examples, up-to-the-minuteguidelines, and pertinent regulations, The Art of Short Selling isa timely and comprehensive reference that arms you with thenecessary tools to make a prepared and confident entrance onto theshort selling playing field.

Developing an Effective Model for Detecting Trade-Based Market Manipulation

Developing an Effective Model for Detecting Trade-Based Market Manipulation
Author: Jose Joy Thoppan
Publisher: Emerald Group Publishing
Total Pages: 86
Release: 2021-05-05
Genre: Business & Economics
ISBN: 1801173982

Developing an Effective Model for Detecting Trade-Based Market Manipulation determines an appropriate model to help identify stocks witnessing activities that are indicative of potential manipulation through three separate but related studies.