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CORVEL CORP (CRVL)
20.68
$0.15 (0.73%)
09:52AM (15 mins delay)
$0.15 (0.73%)
09:52AM (15 mins delay)
An independent provider of medical cost containment and managed care services designed to manage the medical costs of workers' compensation and other healthcare benefits, primarily for coverage under group health and auto insurance policies.
Oct 28, 2008 - 3:02 AM EDT
Did the SEC's No-Short List Impact Stock Prices?
Dr. Duru submits:
Soon after the SEC released its first list of financial stocks that could not be shorted, I posted a chart showing that 46% of the stocks on that list had positive gains for the year. The ban ended as of 11:59 p.m. ET on Wednesday, October 8, 2008, so now it is time to review what impact the ban had on stock prices.
The SEC instituted the ban to "...restore equilibrium to markets...", to call "...a time-out to aggressive short selling in financial institution stocks, because of the essential link between their stock price and confidence in the institution....", and because "...it appears that unbridled short selling is contributing to the recent, sudden price declines in the securities of financial institutions unrelated to true price valuation." The persistent high volatility in the stock market demonstrates that we did not achieve market equilibrium during the ban. How about stock prices?
Complete Story »
Source: Seeking Alpha (Oct 28, 2008 - 3:02 AM EDT)
