Image

1) How can one “short” a stock when short-selling is banned? In September 2008 (

1) How can one “short” a stock when short-selling is banned?
In September 2008 (during the financial crisis), SEC took an “emergency action” and temporarily banned investors from short-selling 799 financial companies. However, many investors found ways around the ban and “short” the stocks. How did these investors get around the short-sale ban?
2) How does the options trading circumvent Red SHO requirements? Please provide examples to explain.