April 15, 2009
Yes, securities rules need to be implemented and in some cases reimplemented to prevent slides in market value like those seen recently. I am for renewing and beefing up the uptick rule and dropping rule 157. And I would suggest that where a stock option represents ownership in a company that the market be forbidden from selling at less than forty or fifty percent of its net worth as determined by the IRS or some independent assessor. This would in fact prevent companies like Enron from bankruptcy, being drained by public opinion but would also keep foreign investors and hedge fund managers from manipulating the market for the purpose of selling off assets and depleting national reserves. I would also suggest that pool funds such as hedge funds be severely limited in size to prevent market manipulation, less than 50M$ or perhaps even eliminated. I recently sold $180,000 dollars worth of stock in a billion dollar company and was shocked to see the change in sticker price as the day proceeded. I can't imagine what some of these hedge funds are doing.
Thank you, sincerely, E.A. Kimble