May 5, 2009
Uptick rule? Absolutely. I NEVER short on anything in my entire life to begin with, as selling something that I do not have simply go against my grain. The least that SEC could do is to offer some level of requirement (uptick rule) to make it a little difficult for trader to sell something that they do not have to begin with. It has been known that prices go down twice as fast as it goes up, so someone need to put a brake on the downside movement so that investors will have the time to make some logical decision rather than checking their stock prices daily due to worries.
It is important to have as much trading as possible, but scaring real investors away and leaving short sellers to sell everything that they do not have to begin with is like hitting on every bad issue twice if not 3 times or more harder.