April 28, 2009
The intention of these proposed short sale price tests and circuit breakers is to instill a certain level of confidence on both individual investors and firms. It is undeniable that high volatility correlates to lower levels on investor confidence. It is simultaneously undeniable taht short sales can be and often are beenficial to the market. The legitimacy of these proposals relies on the SEC's adherence to only be involved in or intervene in short sale prices when a security radically decreases in value. By limiting the potentials for a radically detrimental impact upon the investor, a restoration of confidence will occur and the intention of the proposal will be accomplished.