Abstract:Purpose -This paper aims to explain the SEC's new Rule 201 and amended Rule 200(g), which are designed to improve the regulations that address harmful shortselling practices.Design/methodology/approach -The paper summarizes Rule 201, discusses the reasoning behind the ''alternative uptick rule'', defines ''covered securities'' to which Rule 201 applies, explains why the commission chose the national best bid as the basis of the execution of short sales during the circuit breaker period, discusses the SEC's pol… Show more
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