May 8, 2009
The uptick rule needs to be reinstated. During a bull market which we had in 2005 when the last analysis was done, shorting was restrained and the uptick rule did not play a significant role in that year due to the bull market. With the uptick rule removed in 2007, we have seen significant upturn in the amount of shorting. I believe this shorting led to companies going out of buisness (Lehman and others) and cost the American taxpayers billions with TARP. There needs to be a 10 cent uptick.
Also, just as anyone owning 5% or more of a stock reporting this activity, shorts need to report their holdings when their holdings are 5% or more.