August 28, 2009
Hello,
Appreciate if you can forward this to any policy makers and policy enforcers as appropriate. Thank you.
In light of the Secuties Act of 1933 that mandates - prohibition of deceit, misrepresentations, and other fraud in the sale of securities, appreciate considering the following toward a possible policy to curb unfair market manipulation:
Given that the basic tenet of a share purchase of a company is for the monetary support of the company for its sustenance and growth, any trade that is done intra-day has very little basis and intent to support the true basis of the share purchase and instead, has every motive to profit unevenly, unfairly.
This practice of high-frequency, high-volume trades that are done via computer automation within intra-second, intra-minute, intra-hour have an intent of disregard and deceit at the core and it is time for SEC to act on prohibiting such trades that result in unfair manipulation of the market.
Consider prohibiting such extreme short-term trades or impose a high tax on the receipts such as – a 99% tax on the gain and 0 deduction on any resultant losses.
Thank you for your consideration. If you need any information on this, please feel free to contact me. Thank you.
Chandra Moturu