June 29, 2009
It is clear from past events how damaging it was to remove the uptick rule. This can cleary be seen in the banking and financial stocks such as Lehman. As a small investor I have seen the shorts drive down Sirius stock to unjustified low levels. There is no market benefit to short selling. If you like a stock buy it if you dont then dont buy it, but there is no reason to let Hedge funds drive down the price of a stock by short selling only for their profit. It think short selling should be banned on any stock selling for under $5. give the companies a chance to right there ship and keep their employees without the shorts driving them out of bussiness. Short selling does no good for the economy.
The uptic rule worked for 70 years and once it was removed it was a disaster that cost investors billions of dollars for the profit of a few who made their money driving the stocks down.