SEC Bans Short Sales in Financial Stocks

The Securities and Exchange Commission, in conjunction with the U.K. Financial Services Authority, Friday took temporary emergency action to prohibit short selling in financial companies "to protect the integrity and quality of the securities market and strengthen investor confidence."

In an emergency order, the SEC said its action will apply to the securities of 799 financial companies. The move is effective immediately.

The ban on the short-selling of financial companies will end on Oct. 2, the SEC said, but could be extended. ...