August 11, 2007
Naked shorting should be completely eliminated which is what has been done in Canada if the shorts don't have to pay for their shares then why do the longs have to pay for their shares? The market makers have made use of naked shorts to manipulate the price of stocks by kiting shares. This is the process of selling shares back and forth to one another until the 13th day of settlement at which time they make trades to one another to cover the naked short and then begin the process all over again. I am invested in Dendreon which is perfect example of kiting shares I know this is occuring because I watch the trading daily on level 11 quotes. It is time the sec stopped being complicit with the hedge funds and the market makers and protected the retail investor. The rampant disregard for laws and criminal injustices that are present in the U.S. securities system is a threat to the system itself. Public confidence is eroding while knowledge of these activities is becoming very broadbased. I for one am losing confidence is your stock market. Taking no action against the perpetrators of these fraudent acts has been another of your trademarks. Dendreon corportation has had their stock on the reg sho list for over 90 days and you have failed to investigate these activities. It is time for the SEC to protect the investing public and completely eliminate all naked shorting.