April 20, 2009
General Comment:The uptick rule was in force for 70 years until 2007.
Public policy should be set by adhereing to two goals.
1. Safeguard the capital of the investing public by eliminating those who engage in "bear raids" on stocks. In late 2008, these raids not only destroyed investor capital and confidence in the financial markets, but brought down financial institutions which are key to the flow of debt financing.
2. Companies must be able to raise equity capital and will be unable to do so if stock markets are ruled by short sellers who are either naked or unfettered by the uptick rule which served the markets so well until special interests pushed the matter with the SEC.
Please regulate the capital markets in a way which companies can seek equity financing and investors feel that owning stocks is a "fair deal"