Does Short-selling Need the SEC's Oversight?

"There's really nothing illegal about it" is a phrase often heard in descriptions of the practice of shorting, or short-selling, which are essentially bets that a stock price will decline. But after some market watchers accused short-sellers of unfairly depressing the stock prices of several key financial institutions, the Securities and Exchange Commission imposed new rules. Wharton finance professors Marshall Blume and Franklin Allen suggest the impact will be minimal.

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[extacylife]

Wall street's Naked short Swindle, $3.87 trillion dollar lawsuit. Story and lawsuit of Cmkm Diamonds inc shareholders- plaintiffs against SEC Commissioners - the defendants. You can find the report here on Utube.

Tim Barello from the Manhattan Headlines Examiner joins Alyona from New York to tell you more.

[shakaama]

I would think it goes against all notions of capitalism for an SEC to prosecute someone who is not inside a company to call his friends and tell them to sell their stocks that he sold short.

without short selling you don't have the correct price of stocks. seems you didn't touch on that.

also there was not a complete ban on short selling. there were others that were exempt from the ban.