April 4, 2008
My reaction to reading this language is that hedge funds and others who wish to kill the stock of low market cap stocks can still do so simply by selling the stock short. Short selling has become so pronounced in this market, legitimate investers who purchase stocks as an investment are completely unprotected from these preditors. The only answer is to stop all short trading in small to mid cap stocks entirely. I agree naked shorting is a huge problem, but the real problem is short selling itself. Do away with short selling, period, in the US stock markets.