April 5, 2009
I strongly AGREE with the reinstatement of the uptick rule.
Its is vital that a short seller should not be allowed to sell to the "Bid" price. The right to sell to a bid should be given to the accual share holders for they are the true investors in the company. We all know that the short selling rule was designed to curb the over buying of a stock.
When a stock is soaring the problem is with the "Ask" price being to thin, it has nothing to do with the bid price. as long as a stock can only be shorted above the bid price either between the spread or for the ask price, bear raids and abusive short selling will not be an issue in the markets.
So i propose an "upbid" rule as a great solution for restoring investor confidence. btw the -10% a day circut breaker idea is only really helpful for the penny stocks not the blue chips.