txlaw Posted September 29, 2009 Posted September 29, 2009 http://online.wsj.com/article/SB125415836962146789.html From the article: Lending also plays a role in the SEC's separate effort to limit, in particular, "naked" short selling, in which investors sell stock they don't own. The SEC has said it is exploring a "preborrow" requirement, which would require a short seller to have an agreement to borrow specific stock from a specific broker before placing the order.
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