Replies to post #25321 on KAT Exploration Inc (KATX)

[Er0ck]

"But the rule comes with a price. Implementation costs for trading centers and broker dealers are expected to be between $70,000 and $90,000, SEC staffers said. Ongoing costs for those entities are estimated at $120,000 per year on average. "


LOL I love that right there, "the rules come with a price". I am sorry, but for a company that makes 100s of millions if not billions a year, 70k to 90k for a 1 time set up fee, and then 120k a year is nothing. Specially considering it's going to keep short sellers from completely destorying companies like they did last year.

Both Citi and BOA were almost completely destoryed solely due to short sellers which drove the price down day after day after day before the SEC finally put a halt to it.

I have no problem with people taking short postions on stocks, but this is a MUCH needed rule that will make it far more fair and limit the damage it can do to a company.

[Snibe]

I may be reading this wrong but will the MM's be able to short the first 10% down in a given day. If 10% per day is allowed, then they will have the same effect in the market only taking a few more days to achieve their goals. I can see this helping to curb panic selling due to short selling and a step in the right direction, but I think more needs to be done.