Short Sale Requirements and Strategies

What this video covers

• The two-part test for marking a sell order "long" versus "short": ownership plus delivery capability by settlement
• The three acceptable methods to satisfy the locate requirement before executing a short sale
• Why executing first and locating shares later is a Regulation SHO violation, not a timing gray area
• The single exception to the locate requirement: bona fide market makers facilitating customer orders
• How the alternative uptick rule triggers on a 10% decline from the prior day's closing price, not the current day's open
• Why short sales must execute above the national best bid once the circuit breaker is active, and how long the restriction lasts
• Why short-against-the-box is treated as a constructive sale for tax purposes and does not defer capital gains