The Real Cure for Naked Short Selling

One of our readers has commented on the story "SEC Bans Short Selling in Financial Stocks in Wake of Criticims," posted , Friday. Here's what the reader had to say:Bringing back the uptick rule would help. But the real cure is enforcement of real penalties - three times the profit from both the seller and the seller's broker (for failing to insure the seller had the shares available for settlement prior to the short sale being executed.) Maybe class actions against naked short seller allowing those damaged to recover their losses - and some jail time. You can hide your money in the Bahamas but if you're in the Federal Pen it isn't doing you much good.

PS: I believe in capitalism and free markets when its a level playing field and everyone plays by the rules.One of our readers has commented on the story "SEC Bans Short Selling on Financial Stocks In Wake of Criticism" posted Friday. Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio