May 28, 2009
When a stock has no buyers, the practice by market makers of shorting the stock down to a price that attract buyers artificially depresses stock values and the stock market especially in a recession. If there are no buyers for a stock at it’s “ask price”, market makers should not be allowed to short (depress the price) to entice buyers.
The new uptick rule should address and eliminate this practice. Cliff Lindroth, San Diego, CA