Tuesday, January 04, 2005
Another slap in the face for the little guy
Looks like the SEC plans to further tighten the rules relating to short-selling, particularly with regards to naked shorting. Disgusting! Naked shorting should be encouraged. Small companies with no analyst following are particularly vulnerable to pump and dump scams. It's also very difficult to short many of these companies since their stock is often hard to borrow. Naked shorting thus provides a strong incentive for intelligent investors to profit from the hype and hyperbole of corporate crooks and pump and dump artists by researching companies that analysts overlook and exposing any lies and distortions that they discover. This makes capital markets more efficient, and in the end, protects the small investor. The SEC should be ashamed.
# posted by Stockcoach @ 8:54 PM 
