May 30, 2009
The only fair way to treat short selling is to reinstate the uptick ruling. This would prevent stock values from being driven down by piling-on and therefore destroying investors holdings. The individual investor can therefore be provided a more level investment market and allow for a travesty of fairness.
SEC Complaint Center, 100 F Street NE
Washington, D.C. 20549-0213.
There are trillions of dollars setting on the sidelines that could be invested. Maybe people dont want to invest in the stock market because they do not have faith in the SEC to regulate and enforce the system. There are 3 areas that need to be corrected:
1. Hedge Funds - Why are they not regulated like other funds? Not to regulate shows favoritism.
2. Naked Short Sales - Should be illegal and enforced. How can investors sell stocks they neither own or have legally borrowed?
3. Short Sells - Brokerage firms should not have the right to RAID their clients accounts in order to loan out to Piranha who devour the stock and render its value to practically nothing. Brokerage firms by law should explain to their clients what a short sell will do to their stock holding. Then get written permission from the stock holder to release their stocks for short sells if that is acceptable to the client. How would you like to have a car valet for a price, turn your car keys over to a chop shop to strip it and then return it to you in an useless state?