From: Jim Sutton
As an a small investor, I am extremly concerned with the current practice of "shorting" stocks for the purpose of making a profit by manipulating the price of a company. Not only does this effect the investor, it effect the companies being shorted. How can a company or investment survive when their stock can be shorted to the point that it is worthless? A savings account or business employing citizens is bankrupt so a handfull of people can profit. That is an outrage! Why do stocks appear on the SHO list for weeks without action?
"The primary mission of the U.S. Securities and Exchange Commission (SEC) is to protect investors and maintain the integrity of the securities markets." This is on the SEC main page. Where is the integrity and protection?
A prime example is the current situation with GVRP. Here is a company that completes a reverse split to remove all the shareholders. Then GVRP follows that with a forward split to allow them to sell shares they have stolen from original investors. In GRVP's greedy haste, they sell before the forward split is effective. Now there are many investors holding pre-split shares that are owed (and overdue) post split shares. To date the SEC has done nothing to protect the investor. Until the SEC forces a distribution of the shorted shares and a buyback by GVRP (or simple a settlement), the DTCC will not force the payment of overdue shares. Many investor accounts have been frozen until a resolution is at hand. We are screaming for our "protection" that is the SEC's mission. Please act on this issue and enforce the rules in effect to protect other companies and investors from being "shorted" out of the market.
Lets make all of the securities secure and allow free trade to adjust the market prices.
Thank you for considering my request.