Naked Shorting is Sleezy--You Bet it is & Owner's in EEE Were Cheated Daily:
'Naked Shorting': Far More Dangerous Than Sexy
Wednesday, July 16, 2008; D01
The business world is forever tossing out colorful phrases. Today's is "naked short."
[Pause for requisite juvenile jokes. Yes, heard that one. And that one. Finished? Good. Back to the story.]
Naked shorting is a particularly skeevy kind of short-selling. It is so potentially harmful to shareholders that the Securities and Exchange Commission yesterday put in new protections to try to prevent naked shorting of mortgage giants Fannie Mae and Freddie Mac and major investment banks.
Regulators think that such doomsday wagering may be artificially depressing stock prices, a process that can end up wrecking a fundamentally sound company.
Regular short-sellers are necessary risk-takers and play a key role in making the stock market work. They borrow stock, gambling it will go down. If it does, they make money. If it doesn't, they lose money.
In naked shorts, shorters sell shares they haven't borrowed or don't intend to borrow. Some even short phantom shares that don't exist. Which is why it's technically illegal, though lightly enforced.
It's a frenetic shadow world of postponed promises, borrowed time, obscured paperwork and nail-biting price-watching, usually compressed into a few high-tension days swirling around the decline of a company.
In short, it's the perfect job for the guy who thinks that the action on an illicit high-stakes card game is too boring, regulated and predictable
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Readers were told on June 22,2008 EEE would go back to Reg.Sho & so it did.
Notice Message About Return To Reg.Sho Posted June 22,2008 [Big Time Market Manipulation]
Msg: 10152 of 10455 6/22/2008 11:08:15 AM
Author: no1coalking send pm · add member to favs · ignore
view thread, thread start In response to msg 10131 by osollo
Recs: 1 EEE Will Return to REG. SHO in 13 DAYS !This is Forced Manipulation of The Stock Price Lower.
Shorts will use the forced sales used durning last reporting period to push EEE as hard as possible & it will return to Reg, Sho. By next short report.
investorvillage.com
The deal in Indonesia is about to happen & shorts will do everything possible to hurt EEE's stock price: |
