May 14, 2021
Firt, I applaud the SEC for taking action against this seemingly \"shady\" practice. I am a retail investor who through watching price action has seen their account plummet with no fundamentally logical reason. The last year and a half of trading has been an expensive education as to the real operations of the supposed \"free market\". From my perspective it is not \"free\" as in a level playing field. I could write a dissertation on the on how \"rigged\" the market is in favor of hedge funds who naked short a company and drive down stock prices in some cases that I have witnessed 80%.
I hope the SEC enforces this new rule with harsh penalty. Not only to protect the companies that are emerging as a contributor to the US economy but for the retail investor who by no fault of their own may have to take severe losses to \"pay their bills\" in times of emergency. They take losses only because their stock price has been raped but have no choice but to withdrawal funds to meet their personal obligations. And Q General public wonders why the economy is tanking?? Look no further than Wall Street.
Another reason that may or may not have been overlooked.. SAFETY. Not so much as for the typical investor but for the hedge fund corporations. Why you ask? Listen to the rumblings on the boards. I predict that if this rule does not make an impact on the way hedge funds operate and they continue to naked short stock prices, you will see some retail investor commit a heinous act of violence against a hedge fund corporation or broker. This is a prediction but not wild one as the air of sentiment in the retail investing community is increasingly becoming darker by the day. The new rule needs diligent and severe enforcement.
Again, thank you for recognizing the need for this rule. I hope the SEC continues to take further steps to make trading an equitable endeavor for all, corporations and retail investors alike.
-Michael