June 24, 2009
Would only seem fair if the shorts are driving down a stock price, that their would be a uptick or time delay to correct any possible shorting of a stock that has not been borrowed. Common sense tells me that you can not sell someone something if you do not own it. The trouble with all the rule making is common sense is left out. What is it that is so hard to understand that no one makes money on a stock that is going down except those that have naked shorted (not borrowed) a stock. I would venture to say very few have actually borrowed the shares and are legitimate. I would say if a uptick was in place, or some form of confirmation on the stocks,at least that would give the longs enough time to recoup and deal accordingly and enough time for the regulators to do a better job. I would feel much better if the regulators did not handle buys and sells of a stock like a fast food chain drive through and make sure the I,s are dotted and the T, crossed.
I would dare to imagine how many legitimate companies have gone bankrupt due to naked share shorting.
Thank you for the opportunity to voice my opinion in this free speach society.