Oct. 08, 2022
October 8, 2022 SEC, Rule S7-18-21 is essential for fair market operation, in that it would provide a more level playing field for retail to be able to more effectively invest their hard-earned capital without fear of predatory short hedge funds committing anti-social and downright illegal tactics. Shorting has a role in our capital markets, and if a firm choses to engage in such practices, it should be transparent. Short selling, ideally, is a mechanism to take a stance on the profitability of an investment. In the current market, shorting is used in conjunction with slanderous media campaigns to drive prices down and, if sufficiently successful, force the targeted businesses into bankruptcy. It's no wonder that these operations want to keep their practices occluded from the public. If the SEC wishes to conduct fair and efficient markets, and allow for efficient capital formation, then transparency in the practice of short selling will go a long way to providing its retail participants with assurance that you are not complicit in the illicit behaviors engaged in by predatory and often naked short sellers.