Short-Selling Ban List Expands To Include GM, GE, Others

The SEC has added more companies to the list of 799 companies that cannot be short-sold temporarily. Included are the following firms, according to MarketWatch:

GM
GE
American Express
Legg Mason
Capital One

View MarketWatch's full short-selling ban list here.

The Detroit News reported that GM was one of more than 90 companies to be added to the no short-sell list:

The SEC said the temporary move was needed to "prevent short selling from being used to drive down the share prices of issuers even where there is no fundamental basis for a price decline other than general market conditions."

The emergency ban expires Oct. 2.

Comments

[armadillious2002]

Banning short selling might slow the breech, but people can still sell their stocks and liquidate their positions. Since the monthly technicals have turned down - I expect the markets to retreat for at least 6 months.

[PT6]

I thought it was Naked SHORTING that was a problem and was nat allowed.

Naked Shorting can be used to "KNOCK" out any company they wish using billions and leveraging.

[PT6]

Why only a list of stocks?

I thought this was never supposed to be done!

We have rules to that effect!

Without them they can "KNOCK" out any company thay wish using billions

[iambusto]

do you even invest in the market. if not, do your research please.

[Americatortures]

So what the government is saying is that you can't sell certain stocks short-even if, after doing "your homework" you realize a certain stock should go down-and you're only risking your OWN money??? So companies doing lousy who "have a friend" at the SEC or in the Sec of Treasury's office can have them put that company's stock on the "no-short" list??? BUNK!! Talk about a rigged stock market!! I suggest people get out of the rigged deal ASAP!!! You have a better chance betting on sports!!!

[research]

Sell your stock, don't buy anymore.

Close all Futures markets

Outlaw margins. Naked Shorts, even scanty Shorts, are pure BS.

Would Vegas let you bet on the winners at the craps table?

If you want to gamble, Vegas is open 24 hours per day.

Leave our economic base out of it!

[research]

I want to clarify,

Sell you stock in the companies you would have shorted.

Good companies: keep your stock or buy more.

[Americatortures]

"...no reason for a decline except market conditions"....so you can't sell short if market conditions are a reason??? What the He*l are they doing???? Market conditions ARE the reason just as often as the viability of a stock!! The rules have been jimmied by the Commissars in a Fascist America!!!

[Americatortures]

Just to clarify..I own no stocks except for Halliburton,which has quadrupled since that louse ,Cheney, took office. I have traded in Euros and gold futures for the last 7 years-very profitable! I didn't want posters here to think i had been selling stocks short,and THAT is why I was making the case to allow that practice to continue!

[PT6]

You sure bet on a winner!

$75 breakfasts in IRAQ helped! On Sole-Source Purchase!

[Americatortures]

A sa Dem for Obama, let me still say that not allowing traders to sell short is UN-AMERICAN!. If I believe a stock is going down,and I've done my homework on this,why shouldn't I be able to RISK MY OWN MONEY and sell it short? Isn't that capitalism at its best?? I'm risking my capital for what I believe! I'm not risking your money like these thieves on Wall Street have done. This is outrageous over-regulation! This is NOT a derivitive or any of that! This is a joke. The baby is being thrown out with the bath water!!

[StarkRavingNakedEmperor]

The Derivatives Market will bury the world economy anyway.

It is finished.

[Americatortures]

Short-selling is NOT a derivative!!! Take a course in stocks and bonds before posting,please! This thread is about selling stocks short!!!

[GeoLee]

I jsut wish some of these practices and the verbiage for them would be explained in understandible language for those of us without business degrees . Having taught math at one time in my life, I learned that it is important to teach the vocabulary for the subject and not to assume every human being knows everything about every subject. What are some of these practices and what is short selling? How in simple terminology did all this chaos occur? How do investment banks differ from the other kind the olast two remaining ones are going back to? How are we to prevent ultimately there being oinly tw obanks whifh own all the rest? Won't they buy up all the smaller ones since they wil have all the power of hte money flow? How in say two years will our country be any different than the one we over threw a few years ago? This whole thing smells of monopoly, ultimately and given the wrong person if office what is keeping our country from becoming someone's or some cabal from creating such an erosion that a dictator could not take control. It sure feesl like we are halfway there already!

[iambusto]

washington mutual dropped 21% today. and that was in a market where you cant short sell financial stocks. :)
Now they are adding GE and GM and other companies to the list. How much do you have to bribe the SEC to get on that list.

what could possibly be the gain to put GM on a no-ban list. the faster that company meets its end, the better. but thats just me.

[dbdzen]

The one thing the Fed and SEC cannot control is the short-selling of the dollar.

[research]

Really? You can sell the dollar, how do you "short" the dollar?

[iambusto]

i dont trade futures, but i am guessing among other places, currency futures.

[Americatortures]

What do you think it is when I buy Euros in the futures market??? It's really selling dollars short!!!

[Wingit]

Short selling comes back Oct 2nd. What a joke. the problem is not short selling, the problem is the uptick rule that does not exsist, thanks to the SEC. All they are doing is telling short sellers to take a break until Oct 2 and come back. The same old game will be waiting for you. Anyone with a brokerage account can play this game, just keep tuned to the financial news. When you hear of major bad news breaking on a company call your broker and short the stock. The quicker the better, because without the uptick there is no delay; your position is locked in a few minutes. Now if the uptick rule was in exsistance, even if you acted fast, your broker could not process the order until the stock goes up a fraction, which could take hours, days, weeks or months at which point the short trade could become a liablility instead of a windfall. SEC can't have that happen. They have to take care of their wall street buddies.

[majorteddy]

Finally, a way to make sure you never lose money in the stockmarket. Pass rules that say it can only go up, but can't go down. hmm boy, that sounds good.

[Americatortures]

Exactly-what a farce! And who can guarantee THAT...except when the rules are jimmied up to benefit certain businesses. When the government is in bed with big business-to the detriment of the population, you have ....FASCISM!!! Welcome to Fascist America,folks!!!! That's ABSOLUTELY what is happening....and the Bald Eagle, Paulsen,is ...DER COMMISSAR!!!!!

[phyzise]

Make this AD Viral

http://www.youtube.com/watch?v=6eu9Z2hXky0&eurl=http://www.politico.com/blogs/bensmith/0908/Jawa_gets_results.html

[iambusto]

how many people here are short the $, raise your hands?

while you are at it SEC, just ban all selling.

selling is unpatriotic. if you buy a stock, you must hold it till eternity....(election day ).

bunch of retards running the SEC and treasury.

[Wingit]

Short the dollar and go long in the Euro. As one goes down the other goes up. You make money on both trades. The dollar is getting weaker in the last few days. That's the way Warren Buffet made his first million; trading currency.