July 24, 2008
Naked shorting is illegal. I don't know why the SEC can't enforce the laws already on the books. If I as an individal shorts a stock I have to borrow the stock from someone. Naked short selling distorts the market by creating "illusory shares", which by definition create a false impression of a company's value. If a shorted stock can't be delivered to the shorter within three days of shorting it's illegal and large fines must be assesed or individuals be put in jail if they do this on a consistent basis.
Please enforce the law. For once, protect the small investor and small companies from being ruined by well connected individuals and hedge funds.