Subject: S7-08-09

July 27, 2009

SHORT SELLING - I HAVE BEEN AN INVESTMENT REP IN A SMALL TOWN IN ARKANSAS FOR 25 YEARS. I FEEL THERE IS A BIG PROBLEM WITH THE RULES OF SHORT SELLING WHEN INDIVIDUALS, WHO KNOW VERY LITTLE ABOUT INVESTING AND HOW STOCKS ARE SO IMPORTANT TO THE OPERATIONS OF A COMPANY, CAN GO TO AN ONLINE ACCOUNT (E-TRADE, AMERITRADE, ETC) AND SHORT STOCKS BECAUSE THEY READ HOW TO DO IT. THEY DO NOT DO IT BECAUSE THEY SEE THE PROBLEMS OF A COMPANY THEY DO IT BECAUSE THEY HEARD THEY CAN MAKE MONEY. I CAN SEE BY WHAT I AM READING THAT THIS IS NOT BEING ADDRESSED. I FEEL WE NEED RESTRICTIONS BASED ON HAVING A RESEARCH DEPT AND NET WORTHS. THIS WOULD CUT DOWN ON THE GAMBLING THRU SHORTING.