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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation? -- Ignore unavailable to you. Want to Upgrade?

To: rrm_bcnu who wrote (2509)	6/9/2007 10:44:28 AM
From: Hawkmoon	Respond to of 5034

Elgindy was quoted as saying "All short selling is naked." Thanks for your response!! And yes, I can see the dynamics of shorting are effective "seamless" for the retail trader. He doesn't have to call and confirm that there are sufficient quantities of outstanding margined stock available to equal the short position he want's to take on. That's the responsibility of the brokerage to ensure that total short positions do not exceed total margin positions by finding the stock to be borrowed. But I would have to say that the ability to margin certainly distorts the price level for a stock as well since money is "created" based upon the equity value of the stock in the traders account. But in that instance, one is borrowing against equity in order to purchase more shares on the public markets, which should increase the price for those shares in response to demand. And those shares that are being bought should be in a cash account status, namely that the price increases to reflect the increase demand created by borrowing funds. Shorts should NEVER be able to borrow stock that is not margined. Doing so is a clear case of counterfeiting because they shouldn't have access to unmargined stock. What mechanisms exist to ascertain the level of margined stock so as to determine the available amount of stock that can be shorted? That's what I would like to know.. Brokerages must have some means of determining this. Hawk