SEC Short Sale Rule Could Create a Bubble in Financial Stocks

SEC Short Sale Rule Could Create a Bubble in Financial Stocks

 

Back offices on Wall Street will begin complying today with the Securities and Exchange Commission's limits on short selling, which takes effect at 12:01 a.m. on Monday, July 21st.

 

However, one industry source says that the SEC's emergency order will impact Wall Street's back offices and potentially create a bubble in financial stocks. Gregory Hold, chairman and CEO of direct-access trading firm Hold Brothers On-line Investment Service, warns that SEC's rule change on short selling will add another layer of bureaucracy to Wall Street's back offices and could create an artificial bubble in the value of financial stocks.

 

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