April 29, 2007
Short selling should be made illegal, due to voting rights.
Short sellers could manipulate a company's voting rights by borrowing shares that they never own and vote against its share holders who will be assumed to have no right to vote once their shares being sold short.
A small company could be forced to go bankruptcy by wealthy individual or by hedge fund group who has the resources power to put a small company into bankruptcy.
Therefore, short selling should be eliminated or being forced to cover their shorts in 3 trading days and each company stock can not be shorted more than 2 times in one month period by the same short account.
This will prevent short sellers to harm American companies who are in need of capital to survive their operation.