May 5, 2009
Please reinstate the uptick rule as it existed for over 70 years. The rule was put in place in 1938 to prevent manipulation of stock prices. The rule was eliminated in 2007 after a "study" was conducted during 2005. Did it not occur to anyone that perhaps eliminating this rule was simply capitulation to political pressure? Why change a rule that worked for over half a century? Was there a "study" done to test what would happen during a market melt down?
Elimination of this rule contributed to the chaos we witnessed during the past year. The stock losses of companies driven into the ground by short selling are not just numbers on a page - they are the savings, education, and retirement funds of the people like me.
Give the retail investor a level playing field or you will drive him from the market. Him and his 401K.
In addition, please enforce the ban against naked short selling.
The SEC knows this occurred during the past 6 months yet have done nothing to bring action against these traders.