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


To: gregor who wrote (4303)3/26/2009 7:07:05 AM
From: dvdw©3 Recommendations  Respond to of 5034
 
This is an incidious practice. Investors whose funds loan investment shares should flat out look elsewhere.

The fees collected often go to bonuses or fund largesse making the funds primary business a hierarchal form of ponzi scheme. When a Fund advertises to lure investment money, and then submits that same lured investors investments to practices enabling largesse, no matter how its distributed through operations, those Mutual Funds are counter programming the interests of their Investors with this practice.

this is pervasive mal practice.



To: gregor who wrote (4303)3/26/2009 8:49:02 AM
From: rrufff1 Recommendation  Read Replies (1) | Respond to of 5034
 
You are right, but it is part of a bigger picture. Mutual Funds and other institutions sit silently and do not change managements of the corporations in which they own shares.

Why?

They don't want to put a spotlight on their own incompetent stock picking. Mutual Funds have historically done no better, and often worse, than random stock picking and the managers make huge pay and perks.

This is symptomatic of our entire system. That is, "don't rock the boat," so the mega rich and powerful can feed of the teat of the masses.

So, lending out of shares for shorting is all part of maximizing short term returns. Who knows what the fees and kick backs look like in this situation.



To: gregor who wrote (4303)3/26/2009 11:26:07 AM
From: BWAC2 Recommendations  Respond to of 5034
 
Congrats on reading the fine print. I came across that about 10 years ago. Took every penny out of mutual funds after I read it.

Loaning out shares for shorting by mutual funds is quite simply a breach of fiduciary duty to their investors.