May 2, 2007
The practice of naked short selling has affected the stability of my portfolio more times than I can count It is nearly impossible to participate in a fair market when large traders with huge assets are able to control the volume, price and status of any trade. I am very near to withdrawing from the market completely Trust me, I am not alone. I have belonged to a stock club for the past 5 years. The club was started and established shortly after 9/11 as a way to help boost the troubled U.S. stock market. For a while our trades seemed clean and reliable. If a stock fell there was good reason. For the past 1 or 2 years we have experienced unprecedented cases of stocks falling for no reason other than naked short selling. Three of our club members have cashed out their accounts and put all of their cash into CD's. The remaining 5 members are considering taking all of our cash out of the stock market and investing it into real estate - something we feel we can control better. Even with the recent slide in the home sales market, we feel we have a better chance of making a profit there than we now have in the U.S. stock market It is imperative that you rule to stop this practice and save the status of small investors in the U.S. stock market