- End of Stimulus May Cause Double-Dip Recession: Gross
- Investors Are Going for Gold As Price Nears $1,000 Again
- UK Regulator Wants Banks to Draft 'Living Will': Report
- Dainippon to Bid about $2.7 Billion for Sepracor
- ECB Likely to Hold, Preach Caution on Recovery Talk
- Korea Woori Ponders Putting Money in Blackstone
- Fed's Future: Will the Bank Become a Political Pawn?
- Investors Can't Count On Consumer-Spending Rebound
- A New Mortgage Security? Get Ready for the McGe
- Gauging September’s Correction
- 3 'Gift Giving' Gold Stocks For a Portfolio: Stock Picker
- Expect Sideways Trading for Next Few Weeks: Strategist
- 3D TV Revolution is Upon Us
- Good News in California! Really?
- Pfizer's Big News. Or Is It?
- Locke: Fixing Health Care Is Good For Business
- Goodbye Fannie and Freddie, Hello MCGE
- Expect a 10% Market Correction by October: Strategist
MOST SHARED
- China: The Mineral Hoarder?
- Goodbye Fannie and Freddie, Hello MCGE
- Future of Fannie & Freddie
- Art Cashin: Many Investors 'Gambling' on 'Worthless' Stocks
- Wine: Money In A Bottle
- End of Stimulus May Cause A 'Double-Dip' Recession: Gross
- Denny's Embraces Fast Food
- Consumer Bankruptcies Could Reach 1.4 Million
- 3 'Gift Giving' Gold Stocks For a Portfolio: Stock Picker
Text Size 
U.S. securities regulators charged two option traders and their broker dealers with violating rules to prevent an abusive form of short selling, known as "naked" short sales, the Securities and Exchange Commission said on Wednesday.
 |
The SEC has long sought to crack down on "naked" or abusive forms of short selling, where investors make bets that a stock's price will fall.
The agency's charges against Hazan Capital Management and its principal trader, as well as charges against TJM Proprietary Trading and one of its traders, are the SEC's first enforcement actions for violating naked short sale rules.
Short selling is a legal investment strategy, but some lawmakers and corporate executives have blamed it for last year's dramatic drop in stock prices.
Short sellers arrange to borrow shares they consider overvalued and sell them in hopes of making a profit when the price drops.
Naked shorting happens when an investor sells stock that has not yet been borrowed.
Data is a real-time snapshot *Data is delayed at least 15 minutes