From: Roman [osmar92@optonline.net]
Sent: Tuesday, November 18, 2003 10:12 PM
To: rule-comments@sec.gov
Subject: Short sale, rel 34-48709, file S7-23-03

All these complaints about short sales coming from those who do not understand 
how market works. They are trying to blame every Wall Street professional 
(traders, market makers and so on) for their losses on market. They’d better 
learn how to manage their own money. From historical standpoint regardless 
what short sellers had done, market kept on going up and up and up……..

Everyone should realize that stocks in long run go up and down not because of 
short sellers but due to money flow. Who has the biggest money pool? Correct. 
Institutional entities like mutual fund and likes. Short seller may execute 
trade in and out, money in and out, whereas institutions can push the stock up 
or down for a long time increasing position or decreasing it. Let those who 
complain see institutional holdings to figure out who pushes stocks. Even if 
shorts are  trying to short stocks initially, how many time they got squeezed!?, 
who benefits from these squeezes. Right, individual investors. If stock is 
pressured down then investors can buy it cheaper, if stock is getting squeezed 
up it is even better for those who hold it. Only losers complain.

I believe short selling is positive even it is done on down tick. Short term 
forces of short selling only help from standpoint of liquidity. Abolishment 
of short selling will dry out financial market. If one is a long term investor 
he should thank short selling pressure that helps him to buy security at 
better price.

I am for an elimination of any restriction on short selling as it is done 
with ETF. I would only restrict short selling in those stocks which has very 
small float.

Short selling restriction was put in place when some could manipulate stocks 
with small float. Nowadays, it is impossible to do in Microsoft stock.

Individual investors are mistaken assuming that short selling is to blame fro 
their losses. 

In my humble opinion, I think we have to abolish short selling  restriction on 
National NASDAQ and NYSE, thus individual investor will not create pressure on 
SEC or other regulatory organization. Then they would spend more time on 
educating themselves in investing.

All these rules about short selling in existence are just an anachronism.

Interesting enough is as soon as decimalization had been implemented, market 
had started its way down in a big way.  I bet if SEC forbids short selling, 
market will crash again. 

Why individual investors do not complain about decimalization that brought 
the market down? Oh, yeah, they are having better pricing!!!

When will we finally learn to let natural forces do its work.