$Richtech Robotics (RR.US)$ short sale restricted today ! pu...

104059066 : pls explain above.... thanks

Jensen 108 : I also dun understand too?

Scoreville : A Short Sale Restriction (SSR) notice indicates that trading in a particular stock is subject to the Alternative Uptick Rule, as defined by SEC Rule 201. This rule is designed to limit short selling in a stock after it has experienced significant downward price movement, to prevent excessive volatility or potential manipulation.

When is the SSR Triggered?

The SSR is triggered when a stock’s price drops 10% or more from the previous day’s closing price. Once triggered, the restriction remains in effect for the rest of that trading day and the entire next trading day.

How Does the SSR Work?

While the SSR is in effect:
• Short sales can only be executed at a price above the current national best bid.
• Traders are restricted from shorting the stock as it continues to decline further.

This rule essentially prevents short sellers from driving the stock price down even more by requiring them to sell at a higher price.

Why Does SSR Matter?

• For Traders: It limits aggressive short selling opportunities during periods of high volatility.
• For Investors: It protects stocks from downward spirals caused by predatory short-selling behavior.

If a company is under an SSR notice, it usually means the stock is experiencing high volatility and has already seen significant price drops, warranting caution for all market participants.

甘妮纳 : Is it restricted now?

Mafiosa818 :