From: Peter Kent [pkent@nycap.rr.com]
Sent: Saturday, January 10, 2004 3:22 PM
To: SEC Rule making
Subject: File S7-23-03 Short sales

Dear SEC Regulators,

 

The biggest problem I see with short sales is that individuals and hedge funds may 
short over 5% of a companies stock without being required to report that position 
to the SEC. Anyone who is long over 5% of a stock is required to report, why not 
the shorts?

 

This allows hedge funds to secretly acquire large short positions and then perhaps 
plant negative stories or start shareholder lawsuits against the officers and 
directors in an effort to force down the companies stock price. To me, this is 
illegal stock manipulation that has no laws to control it.

 

Respectfully submitted,

 

Peter E. Kent