OTHER NEWS - Nov. 19, 1991
From Times Staff and Wire Reports
NASD Plans to Change Rule: The National Assn. of Securities Dealers’ board of governors approved a rule change designed to curb abuses of the stock market strategy known as short-selling. In short-selling, an investor tries to take advantage of an anticipated drop in the price of a company’s stock. A short investor borrows the stock and immediately sells it in hopes of replacing it at a lower price--when the stock price drops--and thus profit on the difference. The NASD, which oversees the over-the-counter market, said it plans to prohibit short sales in a falling stock market.
