The SEC is considering restoring the uptick rule, which requires that a stock trade at a price higher than its previous price, before a short sale can be made.
The rule was abolished by the SEC in 2007, but was designed to prevent short sellers from beating a stock into the ground by continous short selling. Some pundits are claiming that the rule will give the market a shot of confidence, and help to drive a recovery.
The WSJ reported the story today.
