Investments glossary

Regulation SHO

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Quotes of the day:

Better stop short than fill to the brim. Oversharpen the blade, and the edge will soon blunt. Amass a store of gold and jade, and no one can protect it. Claim wealth and titles, and disaster will follow. Retire when the work is done. This is the way of heaven.

— Tao Te Ching

Regulation SHO is a piece of Securities and Exchange Commission (SEC) legislation, implemented in 2005 to update rules concerning short sale practices. Regulation SHO established locate and close-out standards that are primarily aimed at preventing the opportunity for traders to engage in naked short selling and other unethical practices.

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