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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation?

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To: gregor who wrote (3230)2/25/2008 11:11:02 PM
From: The Ox  Read Replies (1) of 5034
 
You did not offend and I'm sorry if I came on too strongly. I may need to educate myself better with respect to ETFs but I believe that some of the ETFs aren't that large in terms of assets ($50 Million and less). It seems to me that a sizable naked short position could still entail manipulation of these EFTs. Therefore (and indirectly) the underlying securities that make up the ETF are being manipulated by this "illegal" position. I would like to see the system stop allowing illegal positions in any way, shape or form! Quite simply, there is no reason to allow (what amounts to) "ineligible" trading. If the demand is strong enough, then increase the size of the fund to allow for larger positions (as needed). "Naked" implies to me that it is a position outside the "normal" boundaries of the market.
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