Commentary: SEC offers mixed signals on short selling

02/26/2010 | Wall Street Journal, The

The Securities and Exchange Commission approved a measure in a party-line 3-2 vote to limit short selling. However, the commission, including Chairman Mary Schapiro, does not say that there is any evidence that the practice is harmful to investors or that the SEC's restriction will help investors, according to The Wall Street Journal. "The self-fulfilling logic would seem to be that merely by regulating, the commission can claim to shore up investor confidence, thus justifying its decision to regulate," said Troy Paredes, one of the dissenting commissioners.

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