Return of the Uptick Rule

by MB on March 10, 2009

According to U.S. Rep. Barney Frank, chairman of the House Financial Services Committee, the Securities and Exchange Commission could restore the uptick rule within a month.

The uptick rule prevents a short seller from initiating a sale until a stocks last move was upward.

The uptick rule had been in place since the 1930’s, but was repealed in 2007.

Many investment professionals believe that market volatility in the last year would have been reduced had the uptick rule still been in place.

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