SEC extends ban on short selling in financial stocks

Securities and Exchange Commission (SEC) extended an unprecedented ban against all sorts of short selling in 800 financial companies’ stocks. It would keep in place at least until a decision comes out from the Congress on bailout plan on Friday.

As per the law the ban will end no later than October 17th. SEC banned short selling in financial stocks from September 18th to stop the free fall of the share prices and to shore up the confidence in the investors. The ban was to expire today. The ban would end if the House of Congress accepts the modified bailout plan which was passed by the senate on Wednesday.