July 18, 2008
My views are colored by the fact that I have lost more money than I can afford investing in a company called Force Protection (FRPT).
I suspect the precipitous drop in stock price from about $31 to $1.30 may well have been assisted by naked shorting.
While I appreciate the SEC's efforts to reduce naked shorting they seem to me too little to significantly reduce the problem.
I do not expect the SEC to agree with me but respectfully request that the Commission consider seeking an independent study of the extent of naked shorting, and of the degree to which implementation of the SEC's proposal would reduce it.
This could perhaps be carried out by the Government Accountability Office (GAO).
I make this as a serious suggestion which I hope the Commission will consider as soon as possible.
Needless to say I approve of the proposal as a small step in the right direction.