May 29, 2009
Re: Allow short selling with borrowed stock.
I would just like to comment on the proposed actions of putting a up-tick rule on short selling of stocks. I don't believe this is necessary as long as the practice of naked short selling is stictly prohibited and monitored.
If there is a up-tick rule for short selling then there must also be a down-tick rulle for long buying. See how silly that would be?
Studies have show that borrowing stock and shorting stock is beneficial by increasing liquidity. If a stock price is going to go down, it is going to go down, short selling or long selling, or lack of buyers.
Thanks for taking my recommendation.