From: Ken Tozier [kentozier@attbi.com]
Sent: Monday, June 03, 2002 1:53 PM
To: rule-comments@sec.gov
Subject: Unfair trading rule (NASD-00-02 and NYSE-99-47)

The SEC has instituted a trading rule (2520) which I believe unfairly 
benefits the rich. As I understand it, it basically states that unless 
an investor has a cash balance of $25,000 dollars or more, they are 
restricted to 5 day-trades in a one week period. This constraint bars 
the smaller investor from participating in the very frequent and very 
natural intra-day price fluctuations.

As an example, if two investors set a goal of 30 percent return on their 
investments, a rich investor with the unlimited trading freedom afforded 
by rule 2520 could accomplish this very easily by making 30 trades at 1 
percent each, while the best a small investor could do is 5 trades of 6 
percent. Five 6 percent increases is a far rarer occurrence than thirty 
1 percent increases. So while the rich investor could easily achieve 
their 30 percent goal in a matter of weeks if not days, the smaller 
investor must rely much more on luck and hold their stocks for much 
longer periods of time to achieve their 30 percent goal.

The 2520 rule has some constraints, which I actually agree with, related 
to margin accounts, but for those who have pure cash accounts, I think 
rule 2520 should be modified to allow the smaller investor an unlimited 
number of trades per day, so long as those trades are not margin or 
credit trades. Changing the rule would allow the smaller investor to 
invest scientifically (using research, statistics and probability) 
rather than hoping they pick a winner and hoping that lightning strikes.

I ask the SEC to please have someone take a look at this issue because I 
believe it would benefit a large number of investors who are currently 
excluded from sane, practical and realistic investing by the $25,000 
price cap.

Thank you,

Ken Tozier
Nashua NH