Short selling: further issues
Article Abstract:
The House Committee on Government Operations assumes only investors hoping to profit from a price drop participate in short selling, so the Committee supports expanding the uptick rule and increasing disclosure for short selling. However, this is a limited understanding of short selling which formed 7.2% of the New York Stock Exchange share sales in 1989. Other reasons for investors to short sell include tax considerations, speculation, arbitrage and hedging. Therefore, the uptick rule is not an appropriate reform effort for this area of the securities market.
Publication Name: Securities Regulation Law Journal
Subject: Law
ISSN: 0097-9554
Year: 1993
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SEC Section 16 regulations and compliance by qualified employee benefit plans
Article Abstract:
Changes made in 1991 to the Securities Exchange Act permit transactions by employee benefit plans in stock of their employer. However, Section 16(b) of the Act holds plan administrators and sponsors liable for reporting changes of beneficial ownership and transactions that result in short-swing profits. Due to the complexity of the requirements under Section 16, the implementation of reporting requirements has been delayed until Sep 1, 1993, but plan officers must comply with the old rules while learning to comply with the new.
Publication Name: Securities Regulation Law Journal
Subject: Law
ISSN: 0097-9554
Year: 1993
User Contributions:
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