April 19, 2009
Short selling , as in selling a stock and buying it back lower , is a continueing threat to investors , investor confidence and business confidence . Beta changes at times with the availablility of a stock . The price may go up or down with only vague reference to the companies financial health . It would scare me to tears to know that , as a business person , my company could be shorted to death . I would have little control , even if buying back my own stock rapidly . The price might in no way reflect the value of the stock or company itself .
Naked short selling , aggressive , intentional manipulative short selling must be brought under tight control . A circuit breaker , a percentage limit per trade week on trades , a remodeled uptick rule or a combination seems quite wise and overdue .
Free trade must not be eliminated , however , pointedly aggressive short selling must end . I believe in free trade , I am a begining investor , I am an American Citizen and I lost on 900 shares of Washington Mutual . I would not like to lose again . Thank you , Ed .