Buyer beware

I ran across this article on the SEC website, regarding short selling. They are basically saying that short selling is allowable to cap stock prices!! If they add liquidity when people are trying to buy, there will be no large spike in the stock price.

If people want to bet on a stock declining in value, let them buy option (puts). In fact, buying puts satisfies all three reasons given for shorting stocks.

Since most people investing in the market are out to profit from rising stock prices, it behooves us all to contact the SEC and request that short selling be stopped.

Regards,
Trond

http://www.sec.gov/spotlight/keyregshoissues.htm
A. What is a short sale?
A short sale is generally the sale of a stock you do not own (or that you will borrow for delivery). Short sellers believe the price of the stock will fall, or are seeking to hedge against potential price volatility in securities that they own.
If the price of the stock drops, short sellers buy the stock at the lower price and make a profit. If the price of the stock rises, short sellers will incur a loss. Short selling is used for many purposes, including to profit from an expected downward price movement, to provide liquidity in response to unanticipated buyer demand, or to hedge the risk of a long position in the same security or a related security.