Company News

UPDATE 1-NYSE adds 7 companies to short-selling ban list

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Sept 26 (Reuters) - The New York Stock Exchange added seven companies to its short-selling ban list on Friday, while the Nasdaq added two to its list.

Additions to the NYSE list were Autonation Inc AN.N, Zale Corp ZLC.N, Wright Express Corp WXS.N, iStar Financial Inc SFI.N, Grubb & Ellis Co GBE.N, Hersha Hospitality Trust HT.N and Apartment Investment and Management Co AIV.N.

Nasdaq added MRU Holdings Inc UNCL.O and Sears Holdings Corp SHLD.O.

The list was started by the U.S. Securities and Exchange Commission as an attempt to crack down on short selling and calm turmoil in global markets that had led to wild price swings in the stocks of major financial firms.

Over the last weekend, the SEC decided to let exchanges add to the list. There are now well over 900 companies covered by the ban.

Short sellers borrow shares they consider overvalued and sell them. If the price drops, they repurchase the shares, return them and pocket the difference. (Reporting by Sweta Singh in Bangalore; Editing by Mike Miller)