What are the rules governing short selling?

Short selling is a form of investment fraud law in Washington. It is the practice of selling borrowed shares or stocks in the hope of buying them back later at a lower price. The rules governing short selling vary by state and depend on the specific type of short selling. In Washington, the law requires day traders to register with the Washington Securities Division and pay a registration fee. The Washington Securities Act also requires day traders to pay a fee to the broker-dealer that provides the short sale order to the investor. This fee is set at 0.25% of the total value of the sale. The Washington Securities Act also requires day traders to obtain a license from the Washington Department of Financial Institutions (DFI). Once licensed, traders must follow certain regulations, such as not making any untrue statements regarding the security or its investment prospects. In addition, the Washington Securities Act prohibits short selling on margin. This means that traders cannot purchase securities on margin and then immediately sell them. The Washington Securities Act also states that short sales may only be conducted during regular market hours and that all transactions must be completed within three days. Finally, Washington has implemented a number of pre-borrowing requirements for short selling. These requirements are designed to ensure that short sellers are not trades in securities that are restricted. These measures are intended to protect investors from any fraudulent activity.

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What are the rules governing short selling?

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