SEC rule temporarily limits shorting Lehman shares

On July 15, 2008, the SEC announced a temporary rule limiting the ability of traders to short Lehman shares. The new rule, to be in effect from July 21 until at least the 29th, requires that traders to actually hold shares of Lehman before short selling them. This prevents what's known as "naked short-selling", where traders never actually borrow and sell the shares involved.

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