Short-Selling: What You Need to Know Now

From What to Short When You Can't Short Financials:

The issue we want to discuss for a moment is the "collateral damage" to businesses because of these [financial] companies' failure and continued problems. It takes technology to run these large-transaction and heavily regulated businesses. Now that so many are no longer around and the rest are seeing business shrink, what happens to the technology companies providing these firms with their technological infrastructure? These are big contracts that are disappearing, and with existing clients falling like flies, the possibility of growth or up-selling these customers has also become impossible.

In fact, a large percentage of revenue for technology companies as a whole comes from the financial sector. The financial sector is the largest buyer of tech goods and services. One tech sector that is heavily impacted by these changes is the outsourced technical firms located in India. With financial companies not spending at the same levels and further planned cutbacks, these companies are taking a major hit to their business.

Read the full version of What to Short When You Can't Short Financials.

Chris Cox's Short-Selling Ban Stinks (Video, Sept. 18)

Debra Borchardt says the short-selling ban on 799 financial stocks sets a dangerous precedent and could lead to future disastrous restrictions.

To watch the video, click the player below:

From Naked-Shorts Ban Gets Chilly Reception:

"It's very hard to manipulate in the current environment because, first, we know we're being observed," says Vivienne Hsu, senior portfolio manager of the Schwab Hedged Equity Fund. "And, second, the market would squeeze out those types of buyers."

Mark Coffelt, president and chief investment officer of Empiric Funds, which has both long and short positions, was also unfazed by the changes.

"Essentially what they're saying is, 'We're going to enforce the rules,'" says Coffelt.

Read the full version of Naked-Shorts Ban Gets Chilly Reception

TheStreet.com Reload: Short-Selling

In July, the SEC said it planned to crack down on the naked short-selling of Fannie Mae (FNM Quote) and Freddie Mac(FRE Quote) and reportedly subpoenaed Goldman Sachs (GS Quote) and other top banks and hedge funds in its probe into the rumor mongering that has hammered Wall Street's biggest banks during the credit crunch.

Plus, U.S. Rep. Gary Ackerman (D., N.Y.) introduced legislation to reinstate the uptick rule, which required short-sale transactions to be made at a price higher than the previous trade. The SEC abolished the rule, which had been in place since 1938, last year.

Now, how much do you really know about "naked" short-selling, the "uptick rule" and short-selling, in general?

The following are key insights and core lessons from TheStreet.com.