Overstock.com Applauds SEC's Courage in Addressing Naked Short Selling Issue
SEC Chairman Christopher Cox Takes Steps to Reduce the Frequency of
Unsettled Stock Transactions, an Illegal Stock Trading Strategy
SALT LAKE CITY, July 12 /PRNewswire-FirstCall/ -- Overstock.com(R) (Nasdaq: OSTK) CEO Patrick Byrne issued the following statement today in regards to the Securities and Exchange Commission's open meeting held this morning on proposed amendments to Regulation SHO. (Logo: http://www.newscom.com/cgi-bin/prnh/20030520/LATU020LOGO-a) "I congratulate the SEC for the courage they showed today, and I am grateful for the leadership of Chairman Cox. It is clear he understands the severity of the problem, and the Commissioners can be proud of the steps they are taking to end the blight of abusive naked short selling upon our capital markets." Regulation SHO went into affect in January 2005 and was supposed to stop illegal naked short selling -- the practice of deliberately selling shares of stock without first locating available shares to sell (also referred to as "failure to deliver"). In the open meeting today, SEC Chairman Christopher Cox said it is apparent that there is a serious problem with abusive naked short selling. The Commission candidly acknowledged the shortcomings of Regulation SHO and that proposed amendments to the regulation are the result of thorough analysis. The SEC has also commissioned two academic studies looking into the effects of failed stock trades. About Overstock.com Overstock.com, Inc. is an online "closeout" retailer offering discount, brand-name merchandise for sale over the Internet. The company offers its customers an opportunity to shop for bargains conveniently, while offering its suppliers an alternative inventory liquidation distribution channel. Overstock.com, headquartered in Salt Lake City, is a publicly traded company listed on the NASDAQ National Market System and can be found online at http://www.overstock.com. Overstock.com is a registered trademark of Overstock.com, Inc. All other trademarks are the property of their respective companies.