March 31, 2009
Dear Sir or Ms.,
Thank you for your reply about the uptick rule.
My second question, about shorting of stocks, was directed to the issue of naked or predatory shorting. Shorting, as I understand it, has to do with controlling the excessive price of a stock, when, in the opinion of the shorter, it has been bid too high. It involves the proper borrowing and delivery of the stock, which in recent times has not been enforced. This has worked very much to the disadvantage of the long term investor, and to the disadvantage many USA companies that deserved better. It worked to the advantage of unregulated, uncontrolled hedge funds that were built, in part, on foreign capital, and could care less about the success of the USA as a nation. In most cases, they pocketed unjustified fortunes (perhaps fraudulent), and severely damaged the financial system.
I hope this will also be discussed on April 8.
From: louis seiden
February 27, 2009
1. I was wondering if there is any prospect of bringing back the uptick rule.
2. Are there any additional restrictions being considered on the shorting of stocks?