August 7, 2007
It has become clear that naked short selling by so-called market makers has been abused in recent years. Small companies cannot raise needed capital when their stock is so heavily shorted by market manipulators.
In theory naked short sellers can short more stock than is actually issued. How can this be considered appropriate to a capital market?
I believe that SEC rules must be modified to curb this practice and thereby reduce/eliminate all failure to deliver stock situations.
I implore the SEC to act in the interests of the average investor and not the market makers who are being used by unethical hedge fund thieves.