07/24/2008 05:12 am ET Updated May 25, 2011

SEC Prohibits Some Short Selling

In some corners of Wall Street and Washington, short sellers have become about as unpopular as Red Sox fans at Yankee Stadium.

Short sellers, who bet that a stock will fall in value, have made a lot of money lately, especially in the financial sector. On Tuesday, hoping to calm the markets, Securities and Exchange Commission Chairman Christopher Cox announced tighter rules on a certain kind of short selling in a group of 19 stocks.

The merits of that move are being hotly debated. But this much is already clear: Many of the financial stocks covered by Tuesday's action aren't the ones most targeted by short sellers.

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