News
IBM banned from short selling stocks
Matt Grainger Sep 25 2008, 11:01am
One of 14 companies blocked from short selling
The Financial Services Authority in the UK has added IBM to a list of stocks that cannot be sold short after a similar emergency rule by US regulators.
The move was made as IBM has a finance program that is aimed to help customers pay for large IT purchases, which would be at risk from an artificially induced drop in stock prices.
IBM has said that its inclusion on the list is in the best interests of the company and its shareholders.
The practice of short selling, which involves people selling borrowed shares that they expect to drop in price in the hopes of buying them back for less, has been partly blamed for financial turmoil and regulators around the world have introduced bans.
Link: FT
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