Merrill Lynch to pay $11M to settle short sale data case

Bank of America Corp.’s Merrill Lynch division agreed to pay nearly $11 million and admit wrongdoing to settle charges it used inaccurate data in executing short sale orders, according to the Wall Street Journal.

The settlement would resolve allegations by the U.S. Securities and Exchange Commission, which claimed Merrill Lynch placed short sales on its easy-to-borrow list when they were no longer easily available.

Short sellers borrow shares to sell them in hopes of buying them back cheaper at a later date, aiming to profit from a price decline.

Read more from the Wall Street Journal.