SHORT-SELLING ACTIVITY IN THE STOCK MARKET: THE EFFECTS ON SMALL COMPANIES AND THE NEED FOR REGULATION COMMITTEE ON GOVERNMENT OPERATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED FIRST CONGRESS FIRST SESSION NOVEMBER 28, 29, AND DECEMBER 6, 1989 Printed for the use of the Committee on Government Operations SHORT-SELLING ACTIVITY IN THE STOCK MARKET: THE EFFECTS ON SMALL COMPANIES AND THE 36-736 HEARINGS BEFORE THE COMMERCE, CONSUMER, AND MONETARY OF THE COMMITTEE ON GOVERNMENT OPERATIONS ONE HUNDRED FIRST CONGRESS FIRST SESSION NOVEMBER 28, 29, AND DECEMBER 6, 1989 Printed for the use of the Committee on Government Operations U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1991 For sale by the Superintendent of Documents, Congressional Sales Office Q1 - 1 COMMITTEE ON GOVERNMENT OPERATIONS JOHN CONYERS, JR., Michigan, Chairman CARDISS COLLINS, Illinois MIKE SYNAR, Oklahoma STEPHEN L. NEAL, North Carolina ROBERT E. WISE, JR., West Virginia JOHN M. SPRATT, JR., South Carolina JOE KOLTER, Pennsylvania BEN ERDREICH, Alabama GERALD D. KLECZKA, Wisconsin MATTHEW G. MARTINEZ, California NANCY PELOSI, California DONALD M. PAYNE, New Jersey GARY A. CONDIT, California FRANK HORTON, New York RICHARD K. ARMEY, Texas DONALD E. “BUZ” LUKENS, Ohio J. DENNIS HASTERT, Illinois CHRISTOPHER SHAYS, Connecticut STEVEN SCHIFF, New Mexico ILEANA ROS-LEHTINEN, Florida نمان JULIAN EPSTEIN, Staff Director DONALD W. UPSON, Minority Staff Director 772071 Barnard, Hon. Doug, Jr., a Representative in Congress from the State of Georgia, and chairman, Commerce, Consumer, and Monetary Affairs Finn, Gene, chief economist and vice president, National Association of Securities Dealers, accompanied by John Pinto, executive vice presi- Flaherty, Robert J., editor and president, OTC Review, Inc.......... Guion, John F., president, National Association of OTC Companies, ac- Marquez, Thomas J., chairman, Carrington Laboratories. Russell, Michael K., president, American City Business Journals. Spira, Robert A., chairman, Berkeley Securities, New York........ Letters, statements, etc., submitted for the record by: 3-8 ......... 256-356 55 Letter dated January 1, 1989, to Chairman Doug Barnard, Jr., relat- 39-53 Prepared statement... Hager, Edward B., M.D., chairman, IGI, Inc.: Prepared statement........ 144-152 Ketchum, Richard G., Director, Divison of Market Regulation, Securities and Exchange Commission: Prepared statement.... Kwalwasser, Edward, senior vice president, regulatory group, New York 217-239 Marquez, Thomas J., chairman, Carrington Laboratories: Prepared state- 97-138 Pinto, John, executive vice president of compliance, National Association of Securities Dealers: Stock exchange regulatory budget and staffing Spira, Robert A., chairman, Berkeley Securities, New York: 56-77 |