One way to grapple with short sellers
There have been some very high-profile battles pitting small companies against well-heeled short sellers lately. The SEC has also taken an interest in naked short selling and we may yet see some new rules. One company has decided to take a novel approach. Pegasus Wireless has announced a plan that would reward stockholders as follows: For 10 shares of stock, holders would get a warrant-like security that would be held in their name, not in "the street." That would make it harder for short sales to take place. This could be the start of something.
For more on Pegasus' plan:
- Here's a New York Times article
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