Got Gold Report Comments on Proposed SEC Short Sale Rule S7-08-08

By Gene Arensberg 30 Jun 2008 at 02:10 PM

ATLANTA (ResourceInvestor.com) — I’d like to comment on the Securities and Exchange Commission’s proposed naked short selling antifraud rule S7-08-08 under the Securities Exchange Act of 1934, issued in Release No. 34-57511. The Securities and Exchange Commission needs to crack down on illegal manipulative short selling.

As Dr. Robert Shapiro pointed out in his May 8, 2008 comment, while naked short selling is presumed to be a small amount of the trading volume when compared to all volume of the exchanges as a whole, when the illegal practice is concentrated into thinly traded small and micro-cap companies it can make up a large portion of the trading activity in those issues, perhaps even a majority of all trades for those issues for extended periods of time.

Small, thinly-traded issues on

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