Tony, regarding your post on short sale rules. . .
You stated, "the SEC has given us an opportunity to make comment regarding the changing of short sale rules." Where did they do this? It is rather intriguing.
I believe we individual investors are on the verge of many dramatic changes to the way we trade. Investor/traders are becoming more savvy than ever before, but we still have a long way to go.
You and I generally play on different sides of the ball, however we are both proponents of leveling the playing field for the individual investor. Wall Street Fat Cats have pulled the wool over the eyes of small investors far too long. . .it is time the pendulum swings back the other direction.
Individual Investors everywhere need an outline of exactly what they should be asking the SEC to change. You brought up several important issues in your rant. . .
1. IPO short-selling by MMs, while limiting access by individuals.
2. Daily reporting of short interest
3. Short-selling on down ticks . . and carrying naked shorts.
Along these lines, I would like to propose a few more issues. . .
1. Anal-ysts disclosure of long vs. short positions in all reports on issues they cover.
2. Full disclosure on ALL TV interviews, news articles and other media by ALL anal-ysts, reporters, journalists, individuals, etc. . . in other words. . "Merrill analyst Jim Jones**, says he doubts WXYZ will meet earnings expectations."
** FOOTNOTE: [Nasdaq:WXYZ Jim Jones personal position = 100% short, sponsoring brokerage position = 75% short / 25% long as of the date of this writing]
3. Full disclosure of a substantial change in position by a brokerage 3 days preceding or following an upgrade, downgrade, coverage or dropping coverage of a security.
4. Transaction designation on Time and Sales reports of either "buy, sell, short or cover". This would give individuals a better picture of how a stock is really trading. Other info could include a designation of a market-maker position or a non-market-maker position, etc.
5. A final daily closing price. . .from which brokerage accounting can be performed. . .and reports made.
6. Standardized method of daily accounting of online brokerage accounts. . showing the precise dollar amount added or subtracted from equity upon the settlement of trades on any given day. A daily accounting should be as simple as balancing your checkbook. . .currently it is nearly impossible with many brokerages.
7. Public disclosure of ALL news, financial reports and other important information, as opposed to releasing such to anal-ysts and Market Makers ahead of public release. . . [Arthur Levitt endorses this.]
8. [Write your congressman for this one]. . . . The formation of an independent consumer advocacy group to provide a political and legal voice to the individual investor. . . and to oversee their welfare, with regard to all facets of investment/trading on all U.S. exchanges.
---
This should be enough to get the discussion rolling and the wheels of investors turning to add other such requests. . . [as well as ridicule or scorn from those larger traders harmed most by such changes]. . .Issues should first be argued and debated for feasibility and effectiveness.
Once we have a good understanding and feel for which are the best issues to propose, they should be copied to all investor message boards. . .to be used as a template, from which individual investors can voice their concerns to the SEC and their congressional representatives.
If the effort is unified, by both long and short-selling individual investors, I believe it will carry more weight with the powers that be. So I propose an ongoing discussion . . to occur everywhere. .
If you would like a name for it. . . [tongue somewhat in cheek] . . call it the "Independent Individual Investors Insurrection Initiative" . . .or I.I.I.I.I. [pronounced aye-aye-aye-aye-aye]. . . LOL! That's what the Wall Street Fat Cats will be saying the day the playing field is leveled.
Rande Is |
