Naked Shorting-Hedge Fund & Market Maker manipulation? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: basserdan who wrote (4382)	5/1/2009 12:28:55 PM
From: The Ox	3 Recommendations Read Replies (3) of 5034

The primary evidence of naked short-selling is a large number of trades where shares were not delivered on time, causing a “fail” in Wall Street jargon. Naked short-selling can save a trader the costs of borrowing shares, or can make it possible to short a stock where borrowing is very difficult because so many others want to sell it short. A large number of fails does not prove naked short-selling, since there are other reasons for trades to fail, but such a number does indicate it is likely. Critics of naked short-selling often say it produces “counterfeit shares,” but that term is misleading. Any short-seller, naked or not, takes on the same economic risks. If the price rises, the trader will lose money. If it falls, he will profit. Why does the author ignore the fact that if there is a surge in "counterfeit shares", it will dilute the stock!!!! Quite naturally, the stock will fall in price when there is dilution. How is this taking "the same economic risks"? It simply is not the same risk due to fraud/counterfeiting.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next