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Strategies & Market Trends : Analysis Class for Beginners

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From: Arthur Tang7/28/2007 11:21:50 AM
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The problems of NYSE and Nasdaq is that their transaction system can not handle people who did not want to buy borrowed stock, for disastrous investing.

Recently trader SAC(cohen) bought stock from CCUR directly, so that they did not buy borrowed stock on Nasdaq system. SAC so far is about 30% profit assured. Buying borrowed stock may end up 90% pulled back.

Wall street is right now stuck on a transaction system that does not allow different ways of completing a transaction other than buying borrowed stock, from large brokerages. If 1 million shares owned is sold borrowed 100,000 shares. Then pull back 90% to buy back. 900,000 shares will be only worth 10% of previous price; brokerage customers all suffer losses?

There are companies such as GE, that you can open endedly buy more stock directly from GE?

This practice means, Wombat has to make a few changes in their software to allow companies to sell shares from their treasury and have buy back plan at the same time? Which is the stock and cash pool to stabilize Wall Street investors.

Some might worry about dilution, but cash taken in will not dilute the share in capital. and more capital can make 5% more interest income.
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