Feb. 23, 2023
February 23, 2023 Dear Sir/Madam, I am writing to express my concern about the practice of short selling and its impact on retail traders and the market at large. As a business owner and investor, I strongly believe that short selling is detrimental to the overall health of the market and to retail traders who are at a disadvantage in this practice. Short selling allows traders to profit from a declining stock price by borrowing shares from a broker, selling them on the open market, and then buying them back at a lower price to return to the broker. While this practice is legal, it creates an inherent imbalance in the market as short sellers are able to profit from a company's failure rather than its success. The impact of short selling is particularly damaging for retail traders who do not have access to the same level of resources and information as institutional investors. Retail traders are often the last to know about the activities of short sellers and are left with little recourse when their investments suffer as a result. Furthermore, short selling can lead to market manipulation and instability. Short sellers can create a negative feedback loop that drives down a company's stock price, creating a self-fulfilling prophecy of failure. This can cause panic among retail investors who may then sell their shares, further exacerbating the decline in stock price. I urge the SEC to take a closer look at the impact of short selling on retail traders and the market at large. The SEC should consider implementing regulations that promote transparency and accountability in short selling practices. This could include requiring short sellers to disclose their positions to the public and implementing stricter reporting requirements for short sellers. Thank you for your attention to this matter. I believe that addressing the issue of short selling is essential for the long-term health and stability of the market.