Naked short selling in US is covered by a variety of SEC regulations, which prohibit the practice. Others believe that SEC regulations are poorly imposed. The new SEC chairperson, Mary Schapiro, along with Representatives Barney Frank and Gary Ackerman are all for uptick rule. This is a restriction on short selling in stock markets. It is prohibited for a stock broker to buy shares at a certain price, sell them for less, and then buy them back at a lower price and pocket the difference making a profit, which is essentially betting against Wall Street making any gains whatsoever. The idea is that it will put a stop to any incentives for a down market, and try to bring some investor confidence back. A lot of financial experts, economists, and investors are all for the return of the uptick rule.
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Naked short selling in US is covered by a variety of SEC regulations, which prohibit the practice. Others believe that SEC regulations are poorly imposed. The new SEC chairperson, Mary Schapiro, along with Representatives Barney Frank and Gary Ackerman are all for uptick rule. This is a restriction on short selling in stock markets. It is prohibited for a stock broker to buy shares at a certain price, sell them for less, and then buy them back at a lower price and pocket the difference making a profit, which is essentially betting against Wall Street making any gains whatsoever. The idea is that it will put a stop to any incentives for a down market, and try to bring some investor confidence back. A lot of financial experts, economists, and investors are all for the return of the uptick rule.