Once the latter happens, it's usually only a matter of time before the financially strapped business is struggling for survival. The spreading of false or misleading information has been greatly facilitated through the advent and proliferation of the Internet, coupled with the growing trend of direct investing by small investors. Web sites dedicated to providing investors with information have helped streamline the process of buying stock direct from a company. Congress gave the SEC board authority to regulate short sales to minimize abuses. But some industry observers believe the watchdog agency has failed, or at least could be doing a much better job than the record has demonstrated to date.
Some observers ask.
But more vigilant oversight by Congress can only do so much. The SEC is the watchdog agency that is in the best position to affect change, whose prospects do not appear encouraging in the near term. In the meantime, anecdotal evidence suggests abusive short-selling is becoming more prevalent, resulting in the loss of billions of dollars in market capitalization annually and effecting multiple industries. The Leadership Council seeks to educate members of congress, White House and Federal agencies about the economic and regulatory issues facing America's small public companies.