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

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To: gregor who wrote (3717)8/22/2008 7:38:26 PM
From: makeuwonder  Read Replies (2) of 5034
 
Let's say my broker recommends HAL to me but really the firm wants to short the stock. I buy it on my broker's recommendation. They never buy the shares. The stock declines. I sell at a loss. They pocket the difference. My broker actually gets a commission on the profit.

Yep that's one way they do it.

But really you do know what a "LEGAL" short is right?

I really don't agree with any shorting. I think the way the market should be ran is people buy shares of a company they think will make money. The value of the shares should either reflect what the company is worth or what the company has the "POTENTIAL" to become. The company should always have stock in their account for which they can sell to obtain financing.

JMO
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