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Nearly 20% of the S&P 500 Now Covered by No Short List

by: Bespoke Investment Group September 24, 2008 | about stocks: AET / AIV / AVB / BXP / CBG / CI / CVH / EQR / ESRX / F / GE / GM / HCP / HRB / HST / HUM / IBM / KIM / MHP / MHS / MMC / PCL / PSA / SPG / UNH / VNO / WLP    

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While the SEC's no short list was meant to protect financial stocks from excessive short selling, the current ban covers stocks comprising nearly 20% of the S&P 500's market capitalization, even though the Financial sector only makes up 15% of the index. 

As shown below, there are a handful of S&P 500 companies in the Financial sector (mostly REITs) that are not covered by the short sale rule.  But there are also a number of non-Financial sector stocks that managed to lobby themselves onto the no short list, most notably GE (GE) and IBM (IBM).  Why IBM, which is just slightly more than 10% off its 52-week high, felt the need to get on the list is up for debate.  Our guess is they probably figured that if certain stocks can get special treatment, in the interest of their shareholders, why not them?

click to enlarge

Sec_no_short_list

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This article has 2 comments:

  •  
    Sep 24 11:37 PM
    The socialization of America spreads its wings. Next will be the lines for toilet paper and bread.
    Reply
  •  
    Sep 28 01:44 PM
    To "The World's Worst S.P." It wouldn't be happening ("the socialization of America") if the unbridled abuses of laissez-faire capitalisim hadn't reared their Medusa's hissing head first. It's a matter of necessary checks and balances. (I like your moniker: "the World's Worst S.P."--we're pretty much all of us keeping you company that way. Good luck to you!)
    Reply
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