SEC Approves Expanded Short Sale Rule

An NASD rule that requires securities sold short to change hands by settlement date was expanded to include non-member brokers and dealers, the NASD announced Wednesday.

Previously, since the word "customer" did not apply to non-member brokers and dealers, the short-selling provision did not apply to them. Short selling is the practice of "betting" against a stock by purchasing it with borrowed money, rooting for its price to go down and then selling it back for a profit once it does.