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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: SI Dave who wrote (91056)3/18/2005 10:31:02 AM
From: RealityCheck2  Read Replies (1) of 122088
 
In all the hysteria over naked shorting, it has yet to be shown that there is anything more than a hypothetical "problem" Has anyone ever bought a share of stock only to be told by their broker, "oh no we really couldn't get it, there was a fail to deliver"?

The answer is always "No"

Further, in commodity markets there is no requirement for a borrow. You dont actually have to borrow any gold in order to short it, nor oil, nor wheat, nor orange juice. The same is true in options markets, and in futures.

Where is the uproar over naked shorting of orange juice?

In commodities if you cannot deliver, you are forced to cover. This is the exact same thing as in equities. The existence of a borrow (or lack thereof) does not change that.

Why is it that those crying loudest about "naked shorts" are precisely those companies with the most to hide? Me thinks they doth protest too much.
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