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IBDvalueinvestin (99.68)

lmfao , it was a 1 day rally and not a week or 2 long. HAHAHA

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March 11, 2009 – Comments (6)

Stocks Crashing now -55 DJIA

6 Comments – Post Your Own

#1) On March 11, 2009 at 2:30 PM, IBDvalueinvestin (99.68) wrote:

Nothing can stop the downward Spiral,

Not the uptick, not the mark to market, nothing.

SEC Head Says 'Uptick Rule' May Be Reinstated SEC Chairman Mary Schapiro says 'uptick rule' may be reinstated; action likely next month By MARCY GORDON AP Business Writer
WASHINGTON March 11, 2009 (AP) The Associated Press

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Securities and Exchange Commission (SEC) Chair Mary Schapiro, testifies on Capitol Hill in... Securities and Exchange Commission (SEC) Chair Mary Schapiro, testifies on Capitol Hill in Washington, Wednesday, March 11, 2009, before the House Appropriations subcommittee hearing on the SEC and the financial crisis. (AP Photo/Manuel Balce Ceneta) (AP)

Dramatic changes in the global economy may merit restoring a federal rule aimed at preventing a massive plunge in a stock price caused by a rush of short sellers, the head of the Securities and Exchange Commission said Wednesday.

SEC Chairman Mary Schapiro said the agency "hopefully" will propose for public comment next month reinstatement of the so-called uptick rule.

On another crisis-related issue — an industry push to scrap the accounting rule that forces banks to value assets at current prices — Schapiro said the SEC wants revisions that would continue to provide the transparency investors need without excessively hurting banks.

The uptick rule, which the SEC eliminated in 2007, requires short sellers — those who try to profit from a stock's decline by selling borrowed shares — to sell at a price above a stock's most recent trading price.

"The world has changed rather dramatically in the past year," Schapiro told a House Appropriations subcommittee. "Hopefully we'll get our proposal out in April."

The SEC could reinstate the rule at some time after the public comment period. Schapiro said the SEC also will consider "other alternatives" related to short-selling, which she declined to specify.

As the market has plunged, pressure has been building from some in Congress for the SEC to reinstate the uptick rule, which was established in 1938 during the Depression in the wake of the 1929 market crash.

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Short-sellers bet against a stock. The practice, which is legal and widely used on Wall Street, involves borrowing a company's shares, selling them, and then buying them when the stock falls and returning them to the lender. The short-seller pockets the difference in price.

If a company stock was trading at $50 and a trader anticipated that it would decline, he could borrow shares but couldn't sell them until after the stock traded higher, or "ticked up," to at least $50.01.

Schapiro said a multitude of investors, both large financial institutions and individuals, have been pushing for the rule to be restored.

 

 

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#2) On March 11, 2009 at 3:07 PM, jstegma (29.14) wrote:

It might be a bit premature to call it dead.  Gloom and doom got a little overblown there for a time, so there is room to rally a while without getting overly bullish.

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#3) On March 11, 2009 at 3:12 PM, IBDvalueinvestin (99.68) wrote:

When there is Riots in the Streets demanding that the food be given out to homeless families for free. Thats when you know the bottom is in.

5 Million lost jobs already and still rising at a 640K clip 

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#4) On March 11, 2009 at 3:56 PM, Mary953 (77.94) wrote:

IBD -

I have run across this 4 times so far.  Please  "When there ARE Riots" - Okay?

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#5) On March 11, 2009 at 4:04 PM, IBDvalueinvestin (99.68) wrote:

Okay Mary when the riots happen I will post it 100 times agreed?

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#6) On March 11, 2009 at 4:49 PM, Mary953 (77.94) wrote:

IBD -

When riots happen, I will be hitting the dirt right beside you.  At least I hope you will be keeping your head down and safe.  FWIW, if you had any idea of the number of words that get backspaced into oblivion or sentences that get flipped just so I could get it right, you would laugh at me.  It's that inner editor.  I can't make her shut up!  And she is always right there with me!  Paranoid?  Me?  Ah  --  Nooooo  ........    why do you ask?

Mary  ;-)   (+1)

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