SEC MAKES ONE-DAY EXCEPTION TO REPURCHASE RULE
The Securities and Exchange Commission
said it made a one-day exception to its rule of prohibiting
companies from repurchasing their own stock in the last half
hour of trading, and allowed firms to continue stock
repurchases until the close of market.
    An SEC spokesperson told Reuters that the rule exception
only covered repurchases made today.
    Analysts said that widespread stock repurchases by many
firms today were a contributing factor in the market's rebound
from yesterday's huge losses.
    The rule prohibiting repurchases in the final half-hour of
trading works to prevent rapid end-of-day stock price rises
which could be caused by a company's open-market purchase of
its own stock at the end of a trading session, the spokesperson
said.
    Share repurchases today were called "a smart way to use
corporate equity," by one SEC staff member who refused to be
identified.
 Reuter
