April 10, 2009
I believe that individual stock prices would become much more stable if the practice of naked shorting by market makers ended. I do not know how long this practice has been going on, but it seems it should be illegal, just as naked shorting is illegal for funds or individuals. IMO , going back to uptick rules or implementing circuit breakers is just like putting a bandaid on a gaping wound and will have little effect on stabilizing individual stock prices.