July 16, 2008
If you allowed Naked short sell than you should allowed Naked short buy.In these both cases, buyer and seller do not OWN stock. How anybody can sell something which does not poses? This does not make any seance and this is not the American way. Simply put, NAKED SHORT SELLING is a FRAUD. Also, would be true for NAKED SHORT BUYING. But if you allowed NAKED SHORT SELLING you should allowed NAKED SHORT BUYING.
In both case these rules should be applying equally for everyone.
SHORT SELLING IS O.K. SELLER MUST LOCATED SHARES IN ADVANCED AND HAD POSSESSION OF IT.
ALSO,YOU COULD RECONSIDER UP TICK RULE WHICH IS O.K.
NAKED SHORT SELL IS CRIMINAL AND SHOULD BAN.