April 26, 2007
I ask that the SEC take action to stop the counterfiting of stocks known as short selling. The federal government stopped printing large denomination bills because they were being counterfited. The practice of short selling stocks allows the same thing to occur when phantom shares are introduced into the pool of real shares. It deflates the value of my hard earned investments when these are sold openly by someone who doesn't follow the "Locate and Borrow" rule as shares are being borowed and sold multiple times over Failed deliveries account for several Billion dollars in fraud but this is only the narowest measure of the fraud. The devaluation of the underlying securities must be multiples of lost capital in relation to the actual FTD's Companies are unable to capitalize their efforts fully when this practice goes on and growth is stiffled In the biomedical sector this practice has delayed research into life saving technoligies resulting in untold death and suffering so that some can pocket investors cash, by selling what they do not own. Please act now Simply assigning serial numbers to real shares could help track these transactions to ensure an orderly exchange Please act now