Naked Shorting-Hedge Fund & Market Maker manipulation? Message Board

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

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To: tyc:> who wrote (418)	10/30/2005 4:50:06 PM
From: rrufff	Read Replies (1) of 5034

Actually, it's an issue of semantics. I believe a provisions of Reg Sho provided for a prohibition of naked shorting and then covering with the shares received from an IPO or a convertible. The attempt to short and then cover with a convertible from an IPO or a secondary or a convertible may be defined in this context as naked shorting. The issue that you raise, I believe, is whether the short is covered by a convertible previously held. I suspect that these scammers start the shorting way before the convertible is issued. This would explain why the stock often tanks a few weeks before any filing. That's why I believe it is actually a naked short. Again, it's semantics but I believe a naked short is one that does not have shares borrowed w/i the required period. In that sense, I believe that the hedgie scammers are shorting naked.

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