WASHINGTON (CN) - Under new SEC rules, financial managers controlling more than $100 million must disclose their short sales or short positions in the week after they authorize the sale or position. The SEC also issued three more rules intended to limit failure of delivery on short sales.
Short selling occurs when a trader borrows stock and sells it to a third party, betting the price of the stock will fall, so the trader can buy the shares back at the lower price and pocket the difference before having to give the stock back to its owner.
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