Author: Diane Moore at Internet Date: 12/16/1999 8:46 AM Subject: Proposal # S7-24-99 Dear SEC: This is regarding 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. Abolishing naked shorting in conjunction with being fully reporting requirements will ensure a fair and equitable market for all 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. And while we're on the discussion, why not totally eliminate the possibility to naked short sell any stock. It is my opinion that an investor should own the shares that they are shorting and not be able to borrow them. The intent of the ability to short a stock has created a whole new volatility. Sincerely, Diane Moore