Monday, February 3, 2014

Professors charged with illegal shorting.

Two professors (from Florida State) are caught by the SEC for illegal naked shorting.   While they don't admit guilt, they did agree to pay a hefty fine.

Shorting isn't illegal, but naked shorting can be.  Naked shorting occurs when you sell a stock that you don't own and then fail to deliver the stock to the person you sold it to.

HT:Rob.