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Dec.09
4:02 PM ET
Tuesday, 9 Dec 2008
Stop Trading!: Does the Uptick Rule Matter?

Management at UBS [UBS  Loading...      ()   ], Deutsche Bank [DB  Loading...      ()   ] and Knight Capital [NITE  Loading...      ()   ] have said that a restoration of the uptick rule against short selling wouldn’t make a difference in this market, but Cramer seems to doubt their motives.

“I think these guys are being disingenuous,” he said during his regular Stop Trading! appearance on “Street Signs.”

Cramer wanted these companies to announce just how much money they make in the absence of short-selling rules.

The uptick rule, which was repealed by present SEC Chairman Christopher Cox, required a stock to “tick up” in price before it could be sold short.

The Mad Money host also said that while it’s easy to say this rule doesn’t matter, the speed at which Lehman Brothers, Bear Stearns and other major banks have been driven out of business is proof to him that protections against bear raids are needed.

The uptick rule offers the investors a chance to “catch their breath,” and at the same time gives buyers an entry point.

“We’re in a bear market,” Cramer said. “Let’s just try to figure out what worked for the last 70 years and reinstate it.”

Watch the video to see what Cramer had to say about Under Armour [UA  Loading...      ()   ].





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