Subject: Comments on naked shorting and MM manipulation

Date:    11/22/99 7:36 AM
     
     
     
For those of us with Level 2 and who seriously invest and do due 
diligence of companies of the OTC/BB market, we applaud the proposal 
outlawing naked shorting.  The actions of Market Makers and others who 
spread fear and doubt all over the Internet about companies they wish to 
short are already costing investors perhaps hundreds of millions of 
dollars each year through dubious means.  Naked shorting is an extreme 
tool they use that would best be eliminated.
     
The Internet discussion sites, especially RagingBull.com, but also 
SiliconInvestor.com are places where many investors go to research 
and/or follow their favorite companies.  What they often find are paid 
shills who spread fear and doubt and use scare tactics to attempt to 
help reduce the price of the stock.  They also face wide spreads and 
incredibly common manipulation of the stocks by Market Makers.  
     
Anything the SEC can do to level the playing field and to watch and 
prosecute illegal MM activity would be much appreciated.  I really 
advocate trading without Market Makers, so that buying and selling 
volumes alone determine bid and ask prices.  It would be a much fairer 
system.
     
My hope though is that the SEC is tracking all kinds of illegal activity 
and will seek a settlement against the Market Makers and others who have 
so commonly been literally stealing investors' dollars by the millions 
each and every week for perhaps years.  Level 2 has really opened up my 
eyes to just how badly manipulation goes on.
     
Respectfully,
Dave Gore