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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: The Vet who wrote (12424)	9/18/2002 3:00:07 PM
From: The Vet	Respond to of 16631

More after the market reading on shorting ACU Vice-Chairman Testifies Before Congress on Behalf of America’s Small Businesses Devine testified alongside Mr. James Steinkirchner, Co-Chair of the National Small Public Company Leadership Council, who called attention to the practice of illegal short-selling. Steinkirchner detailed the manner by which a corrupt investor or broker-dealer would disseminate false and misleading information to drive a stock’s price lower or would “short shares” to drive down the conversion price of a note before the actual conversion date occurs. The corrupt investor then would cover or hedge his position, producing a lucrative, and illegal, financial gain. Like Devine, Mr. Steinkirchner offered the Subcommittee reasonable solutions to the problem in his testimony. “The same ‘uptick’ rules should apply to all stock exchanges as a requirement to make a short sale in the first place,” said Mr. Steinkirchner. “Broker-dealers must be required to meet the same coverage requirements for ‘naked’ shorts, as applied to investors. Also, the shorting of bulletin board, NASDAQ small cap and NMS stocks below certain price ranges must be prohibited. The government is under obligation to protect our nation’s small businesses and the spirit of independent entrepreneurship.” conservative.org