Shorting Down Value The Toxic Effect of Insufficient Internal Liquidity

WHU Conference in Germany) on the effects of unrestricted short selling is attached. Based on that research, restricting short sales after large price drops might have a significantly positive effect in allowing viable firms to raise new capital. On the other hand, the ways around the uptick rule (explained in Scientific Investment Analysis, 5th edition published in 2008 by SIA) imply that reimposition of that rule would be useless. In any event, the SEC needs to start enforcing the rules, such as the ones requiring delivery of shares borrowed under short sales. Sincerely