April 25, 2008
While "short selling" is a legitimate strategic investing tool, when done in a manner that violates the exact letter and spirit of the rules it punishes the value investor. When I buy a stock on margin I need to have the appropriate equity in my account to support the trade. If I sell a stock "short" there has to be lendable shares to cover my short sale. Anything less than that is fraud and should be delat with harshly.