March 31, 2008
I am in favor of passing the new rule against "Naked Shorting". I also regret the loss of the uptick rule but I understant that it was hard to enforce. Naked Shorting is nothing more that pure manipulation. You can't purchase "phantom" share on the long side, but traders frequently "sell naked" with no intention of ever borrowing the shares. They are shorting "phantom" shares or shares that don't even exist. These "gangs" of naked short sellers are using illegial methods to profit from the small investors demise. In addition to illegial gains, they are destroying the value of corporate America and they are reducing investor confidence in our capitalistic market. For publicly traded companies, their common stock is their capital, and in some cases - their only capital Their common stock provides for growth of their business model which in turn creates job opportunities and provides for corporate income taxes. It's no secret that hedge funds and long/short funds specialize in ganging up and shorting shares that don't even exist. Please pass the proposed rule to BAN NAKED SHORT SELLING The rule must be enforced by the only thing that motivates these illegial traders - money. PLEASE ENFORCE THE RULE once it is passed and hit them with serious fines. The hedge funds and short sellers claim they are protecting the market from high valuation? Please let the SEC provide the protection for investors. The value of a common stock should be determined by fundamentals and supply vs. demand. "Supply" means selling of existing shares and "demand" means buying of existing shares. In no way, should "naked shorting" of shares that are not borrowed,(and may not even exist) ever be allowed. This "loophole" is destroying wealth for many investors and american corporations alike. Please end the cancer that is spreading in our financial system In addition, the SEC should require that all "naked short" positions must be unwound and that any company that suspects large amounts of naked short positions should have direct access to SEC investigators who can levy fines to violators.