Subject: File No. S7-20-08
From: Peter Quartararo
Affiliation: Student

July 28, 2008

I just heard there is a possibility that the emergency order on naked short-selling may be lifted. HOW IS THIS POSSIBLE? I thought naked shorting was illegal to start with. Naked shorting is a form of financial terrorism preying on fear and destroying value. I implore the SEC to enforce the rules and protect the markets for the small investor. If a company truly is financially in trouble, the market will eventually price it correctly. Naked shorts prey on fear and can swiftly destroy a company even when the underlying fundamentals are sound. This is not what short selling was designed to enable.