September 18, 2009
Dear Chairwoman Schapiro,
Please reinstate the uptick rule I beg of you on behalf of myself and so many other investors in small cap and micro stocks. Everyone knows that the purchase of any stock on any exchange comes with an assumed risk. Those that routinely practice 'naked' short selling know that those who purchase stock in companies have no idea of which stock will be hit and which ones will be left alone. We tread the waters of the investment world with invisable sharks whose only goal is to fill their own pockets with millions of dollars. The investors are not the only ones getting hurt. In the small cap world there are good, decent, honest companies with owners/management that want to succeed. Naked short selling essentially can damage a small reputation in the stock world if the company is a target of this practice. Once a company becomes targeted and the stock is manipulated and continues to be manipulated - How hard do you think it is for a small cap company to raise capital when trying to offer shares at prices that are a tenth of what they should be and end up having to sell so many shares it dilutes the stock to the point where a reverse splits happens and the naked short selling starts all over again and the stock has no hope of recovering and the company eventually goes out of business. If this sounds unbelievable - PLEASE check with some of the small cap companies that are no longer in business and why they couldn't raise enough capital through the issuance of stock. I can tell you why - because the stock was manipulated and the only ones making money are the ones who are naked short selling. To not reinstate the uptick rule would only serve to continue to give those that make millions naked short selling a free ticket to essentially rob investors blind and to continue to hurt all companies, both large and small, and put some completely out of business. If you stand by and do nothing - knowing that there is such a rampant problem and people losing millions upons millions every year - in my opinion - then there is no hope. People that know there is a problem and stand by and do nothing are no better than those that are causing the problem. President Obama stated that Wall Street cannot continue business as usual. Business as usual would be allowing those invisable sharks to continue to rip the common investor apart and for no one to do anything as we scream as we watch our accounts lose value on an unfair playing ground. Please make a change. Who is here to protect us if you aren't?
Thank you for your time and consideration.