April 3, 2009

Subject: Short Sell Regulations


I would like to take an opportunity to provide a suggestion regarding the "Short Sell Regulations" to be considered at your April 8th 2009 meeting. Short selling may have its place in the investment world but I DO NOT think it should be used as a tool to drive down the pps of a company as has been done over the past year or so. Naked Short Selling should be banned, if the trader or the broker doesn't have possession of the shares they should not be allowed to sell said shares (loaning shares that neither the broker or the client/trader have possession of in my opinion is just another way for inside /secretive trading between a broker and client and does not put everyone on a level trading platform).

In order to regain the confidence of the average individual/investor the commission needs to make very precise and clear rules towards such activity (with today's free access to the Internet, violators can publish erroneous and fictitious comments that will drive down a stock for their own gain and no one is policing this kind of activity ---- yes I know the next statement from the SEC will be ---- well you have the right to report such activity --- we all know how this goes --- you get the tip/information and by the time the SEC takes action the deed is done, so too bad for the little guy) (sorry about that little rant)

Why not add some additional bite to the proposed change requiring an uptick of a certain percentage, consider adding the following:

1) A stock priced less than $5.00 can not be shorted with out an uptick of 30%

2) The Broker must have the possesion of the shares before the sale can be executed (none of this, make the sale and I'll locate the shares later)

3) The stock of any company accepting Government Subsidies/Bailout funds can not be sold short period --- this will remain in effect until said company has repaid 50% of the Government funds.

4) Uptick of 15% for any stock priced between $6.00 and $15.00.

These changes will require anyone that practices the art of Short Selling, due their research and support the fact that a companies stock is going to go down for what ever reason and not because he/she wants to force that PPS to drop by dispursing negative propaganda.

I like many have been severly hurt by the rash of short selling be it naked or otherwise.

This practice not only hurts the average investor but has really reeked havic on some very sound companies --- if the GOV and the SEC trully want to prevent another situation as we have today then I agree tighter regulation is necessary --- Protection of individual investors and the companies inwhich they invest must be of the utmost priority.

Thank You for your time,

Marshall Boerio