 What is short selling?  Regulation – Historical, Current, Proposed  How does shorting affect the economy?

 Covered short  Naked short  Option short  Derivative methods of short

 Hedge Funds  Pension Funds and Insurance Companies  Market Makers  Investment Banks  Individuals

 Hedge  Speculate  Diversify  Market Manipulation

 What is short selling?  Regulation – Historical, Current, Proposed  How does shorting affect the economy?

 Securities Act of 1933 – Rule 144, 144A  Securities Exchange Act of 1934 – Rule 10a-1 “Tick Test”  Regulation M  Regulation T  Regulation SHO

 Great Britain – disclosure requirements  Hong Kong – eligibility requirements  Canada, Japan, HK – price restrictions  Aus, CA, Japan, HK – flagging  Japan – margin requirements

 SEC › Uptick › Circuit breakers  CESR › Pan-European Short Sell Disclosure Regime  IOSCO › 4 principles › Decrease regulatory arbitrage › Increase transparency

 What is short selling?  Regulation – Historical, Current, Proposed  How does shorting affect the economy?

 Media perspective  “Joe 6 Pack” perspective  CEO perspective  Analyst / economist perspective

 Market Abuse and Manipulation  Price Reversals  Aggressive Short Selling  Investor Confidence

 Naked Shorts  Outstanding Shorts  Stock Sales Volume  Shorts Overall ?  Media Attention  Investor Confidence  Counterparty Confidence