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Selling Short Against the Box

Aug. 15, 2007

A short sale against the box of a stock is where the seller actually owns the stock, but does not want to close out the position.

SEC and the Financial Industry Regulatory Authority (FINRA) rules place restrictions on when you can sell short. You can read about these restrictions in our Fast Answers databank on "Short Sale Restrictions."

We have provided this information as a service to investors.  It is neither a legal interpretation nor a statement of SEC policy.  If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.

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