April 5, 2008
It's long over due to take some effective action to STOP not just slow down the criminal actions of those that would profit by use of deceptive and out right illegal tacktics
I'm sure the SEC doesn't have time to check every short trader, so it must impose such sever pinalties that the fear of being caught and the consequences would completely deter anyone from even attempting a naked short.
There needs to also be a penalty on the brokerage house facilating the transaction..the penalty should increase with the number of infractions.
The invertor who owns the security should be able to opt out of allowing their security to be loaned to a short interest. Their money paid for the security, it doesn't belong to the brokerage house. When they allow a stock to be borrowed from an investor account and they recieve a dividend it is reported as "payment in lieu of" and does not qualify as a "qalified dividend" meaning it's taxed at ordinary rate not the lower rate.
So why should the short seller be allowed to cost the investor tax money while the short and broker are making money off his stock ownership.
You've got to take some immediate action to STOP THIS ABUSE..PLEASE