Battery seller short-circuits the market 06 September 2012Chicago Reporter: Georgina Lavers
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Battery manufacturer A123 Systems triggered the market short-sale rule on Wednesday morning, 5 September, when shares of its stock dropped below 10 percent of Tuesday's closing price.
The market trigger was created in 2010 by the SEC to prevent aggressive short-selling, and is triggered when the price of a stock drops in trading more than 10 percent from the previous day's closing price.
Restrictions are now in place regulating short sales of AONE, a battery maker. The restriction gives precedence to long sellers over short sellers to sell their shares.
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