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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation?
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To: ogstel who wrote (4289)3/20/2009 7:20:12 AM
From: rrufff1 Recommendation   of 5034
 
As many of us have been pointing out for years, the system is set up such that the information is not available to get a real picture of what the picture "short" is, if you want to get the full picture that includes all possible "short" sales. That is, real shorts, naked shorts, ex-clearing, MM, option MM, etc. The argument was always that this is proprietary information that the MM and the option MM needs to do their job. Ironically, Madoff claims his MM business was perfectly legal and legitimate. I think this may be the next shoe to fall if the regulators do their job. In this relatively new century, where technology is available to eliminate the excesses of MM's, it's ridiculous to see those who defend the archaic rip-off by MM's, so integrally connected to almost all the newly discovered market endemic scams.

The option MM exception is really a joke. I have yet to have a problem writing calls on stock even if there is no stock available to short. That means an artifical short is created even when supposedly a stock is not supposed to be shorted. The option MM shorts the stock whenever he feels like it and doesn't bother to worry about a borrow because that's just the way it is.
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