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Friday, 12/14/2018 1:10:48 PM

Friday, December 14, 2018 1:10:48 PM

Post# of 82642
It should be Illegal to Short in OTC. It's an unnecessary exploitation of vulnerable stocks and investors. We need to support small companies and investment in this country. Stock pricing should relate to market fundamentals that do not involve shorting. Shorting in combination with buying creates a profit engine that sucks value out of a stock and into the coffers of those that can afford the risk of large short positions, while discouraging investment into small growing companies. These shorting engines operate completely disconnected from a stock's fundamentals. It's like a tub of water where water is money/share price/value that has a pump in it that turns on when the value reaches a certain resistance level. It pumps out the stocks value until closing out the position at a lower support level where a long position is created as it rises; the cycle is repeated. If CVSI earned as much as Amazon, it could still trade between $4 and $6/share on the OTC (Ok, that's an exaggeration!). The trick is to discourage an overwhelming inflow of money by proving there is a disconnect of the stock price with reality through short attacks at the right time to tightly control price within a useful range - higher share prices are hard to dominate. I will support any legislation that limits shorting to those stocks on the major exchanges. Even on the major exchanges companies need to be protected from excessive coordinated short attacks or from very wealthy investor's ability to overwhelm and excessively manipulate a company's stock price - especially for small companies. Shorting engines discourage investors from buying small company stocks on OTC; therefore, the OTC and investors should welcome such restrictions. What do you think?