How does the options trading circumvent red sho requirements


Discussion Post

• How can one "short" a stock when short-selling is banned?

In September 2008 (during the financial crisis), SEC took an "emergency action" and temporarily banned investors from short-selling 799 financial companies. However, many investors found ways around the ban and "short" the stocks. How did these investors get around the short-sale ban?

• How does the options trading circumvent Red SHO requirements? Provide examples to explain.

The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.

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Financial Management: How does the options trading circumvent red sho requirements
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