August 21, 2009
Regarding uncovered short sales:
We believe naked short sales (NSS)
may serve price discovery and are therefore
worthwhile. The arguments against them
we feel are weak for the following two reasons:
FIRST: So long as all participants are aware
of the naked short sale then no injury.
No injury no economic damage.
SECOND: the naked short selling
is really no different than financial futures
in which there is nothing more than a contract
Sincerely, Mark Nielson PhD