May 26, 2009
I am a semi retired retailer. I am an investor in my Roth IRA. I believe the SEC should enforce the tools available to them and also reinstate the uptick rule. When a new company is formed they may turn to the public for funds. At that point, as a publicly held company, I have the opportunity to contribute to their company in hopes of sharing in future profits. As time goes on, if the stock price rises, the company can raise funds by selling shares they have retained. This is investing. Much of the rest that goes on under the guise of "investment" is actually legalized gambling. Short selling has no vested interest in the success of the company and is obviously counter productive to that goal. There is no sane reason to allow naked shorts and all the other abuses that take place by short sellers.