Date:    07/02/2000  1:38 PM

Subject: File No. S7-24-99

File No. S7-24-99
Jonathan G. Katz
Secretary
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549-0609
VIA E-MAIL
     
Subject: Extending the Short Sale rule to Non-Exchange Listed Securities
     
Dear Mr. Katz,
        The best thing that the Securities and Exchange Commission could
do for investors in the OTC markets (e.g. Nasdaq Small Cap, the NASD's 
OTCBB, the Pink Sheets) would be to prohibit naked short selling by Market 
Makers. This would reestablish the law of supply and demand in these 
markets.
        Naked short selling is the sale of shares that are not in the
Market Maker's possession, nor backed by the loan of shares from another 
entity or individual. This in effect dilutes shareholder value through an 
unauthorized increase in the float. Market Makers should only be able to 
sell shares that they actually have on hand or that they have borrowed 
from another entity. The sale of these fictitious "naked" shares should be 
prohibited. It disturbs the balance of supply and demand by making supply 
infinitely elastic.
        Regards, Mark Hooker