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  2. Glossary
  3. Regulation SHO
GlossaryMarket Structure

Regulation SHO

The SEC rule set governing short sales (2005). It requires a 'locate' before shorting, forces close-out of persistent fails to deliver, and includes the alternative uptick rule that restricts shorting a stock after it falls 10% in a day.

Appears in these guides

  • Naked Short SellingMarket Structure
  • Short SellingMarket Structure

Related terms

Cede & CoClearing HouseCost to BorrowDark PoolDays to CoverDRSDTCCExchangeFails to DeliverHigh-Frequency Trading

Related lessons

advancedMarket Structure

Reading Short-Selling Data: Short Interest, Short Volume & Cost to Borrow

Three numbers get quoted endlessly to judge how heavily a stock is shorted — short interest, short volume, and cost to borrow — and two of them are constantly misread. Learn what each actually measures, why short volume is NOT short interest, why short interest can legitimately exceed 100% of the float, and why the borrow fee is often the most honest real-time signal of the three.

Ironclad Research provides educational content only. Nothing on this platform is financial advice, a recommendation, or an offer to buy or sell any security. Always do your own research and consider professional advice before making financial decisions.