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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation?
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To: basserdan who wrote (4327)4/6/2009 7:47:40 PM
From: Hawkmoon6 Recommendations   of 5034
 
Should naked short selling be illegal?

They can't just ask if the counterfeiting of stock certificates (electronically and/or physically) should be illegal?

Because that's what Naked Short Selling actually is, isn't it? Borrowing shares that don't legally exist (margined and often total outstanding), right?

Here's your sign!!!

All one has to ask is why short interest increases at the same time that margin exposure has DECREASED. Because, according TO THE LAW, the only stock that can be loaned out is stock purchased ON MARGIN. Shorting is supposed to be a tool to counter excessive margin credit, not a WMD of financial destruction where people can spool up their own electronic printing press and sell stock certs that were never issued.

Hawk
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