SEC limits shorting Fannie shares

On July 15, 2008, the SEC enacted a temporary rule limiting the ability of traders to short shares of Fannie Mae and Freddie Mac. The new rule, to be in effect for 30 days, requires that traders to actually hold shares of the two companies 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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