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Prior to this ban, the SEC amended Regulation SHO to limit possibilities for naked shorting by removing loopholes that existed for some brokers and dealers in 2007. Regulation SHO requires lists to be printed that monitor stocks with unusually excessive developments in failing to ship shares. The Securities and Exchange Commission banned the practice of bare brief promoting within the United States in 2008 after the monetary disaster. The ban applies to naked shorting only and not to other short-selling activities. Naked shorts are believed to symbolize a major portion of those failed trades.
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