Subject: S7-24-99
Author:  Rule-Comments at 03SEC
Date:    12/08/1999 11:33 AM
     
     
Dear SEC 
     
I am a small investor that has been in the market for four years. And have 
suffered because 
the OTC market lack some of the basic protections of the big exchanges.
     
I am writing in regards to the proposed law concerning the short selling of 
OTCBB 
stocks(Proposal # S7-24-99). The naked shorting of OTCBB stocks should be 
eliminated. 
One of the main reasons why "penny" stocks are so risky and volatile is not 
solely because of 
the companies themselves, but because of the rampant naked shorting by market 
makers and 
offshore brokers. This activity goes unchecked everyday and must be dealt with 
accordingly. 
     
The abolition of naked shorting in conjunction with the requirements of being 
fully reporting 
will ensure a fair and equitable market for investors and companies alike, a 
market where a 
company's true value is reflected in the price and not distorted, suppressed or 
inflated 
artificially by manipulation. 
     
Sincerely, 
     
Thomas McDaniel