May 4, 2009
Naked short selling serves no purpose other than give large investors additional tools to manipulate the market at the expense of small individual investors. Computerized trading by hedge funds and mutual funds that can respond much faster than human traders already dominate the market. On the top of that we have ETFs and mutual funds that specialize in shorting. Short sales by institutions and foreign agents should never be allowed as witnessed by the problems caused by the above market manipulators. Individuals are the back bone of the market but routinely used by the large organizations and ignored by the SEC. This is the chance to limit the influence of the unregulated institutions and give the little guy a better chance.