SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Clase Azul who wrote (464)11/8/2005 1:37:06 PM
From: tyc:>  Read Replies (1) of 5034
 
I agree that the posting you quoted presents a good argument for your cause. In particular;

"we also know that margin requirements already put a very substantial brake on shorting."

My understanding is margin requires all "shorts" to be backed by CASH.. and that the cash backing must be marked to market daily. If the account is "short" as a top priority there must be sufficient cash coupled to the short to permit its closure at current market prices.

In that sense, it shouldn't matter whether the short is naked. It's nakedness is, or should be, covered by CASH.

But what guarantee is there that financial institutions adhere to margin rules ?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News