In A Totally Rational Move, The SEC Is About To Ban Short Selling

The aggressive disdain for short selling, or the practice of betting against a company’s stock market success, continues.

WSJ: The Securities and Exchange Commission prepared an aggressive assault against short-sellers, saying it would temporarily prevent investors from making bets on stock declines in an attempt to stem some of the worst stock-market slides in years, according to people briefed on the proposal.

The SEC was convening a late-night commission meeting to consider several items, some of which could be announced as early as today, a person familiar with the matter said. It’s unclear whether the halt will be limited to a certain number of financial stocks or how long it would last.

Following a late meeting with Congress, Mr. Cox said, “We’re going back to work tonight and in fact the entire commission is in formal meeting right now.”

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