Federal Securities Law Source

Tag Archives: Selling

Why indemnification clauses need to be scrutinized in purchase and sale agreements

Indemnification clauses in purchase and sale agreements are intended to address the obligation of one party to indemnify and hold the other party harmless from direct and third party claims. However, indemnification clauses also allocate the risk of losses between the parties. An indemnification clause should specify the rights of the parties following a breach … Continue Reading

Emergency Naked Short Selling Rule

An emergency SEC rule that will go into effect on Monday prohibits naked short selling of 19 financial companies including Freddie Mac and Fannie Mae. The SEC expects the rule to curb illegal shorting practices that several financial firms claim are causing unnecessary panic and capital market dysfunction. Short selling is the process of borrowing … Continue Reading