Facebook shares trigger restrictions on shorting 23 May 2012New York Reporter: Georgina Lavers
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Facebook shares prompted SEC rules on shorting after dropping by 13.7 percent in just the opening minutes of trading on Monday.
15 minutes into Monday's session, NASDAQ issued a warning stating Facebook shares had triggered restrictions on shorting under SEC regulation SHO, after the stock dropped more than 10 percent from the prior day's closing price.
After a $0.23 gain on Friday, the stock finished Monday down 11 percent and continued to slide on Tuesday morning.
Financial Industry Regulatory Authority daily reports on Regulation SHO trading reported that on Friday, 23.6 million Facebook shares were sold short on the NYSE and NASDAQ combined. With the short sale restrictions in place on Monday, the number fell to 6.4 million.
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