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

To: basserdan who wrote (4327)	4/6/2009 7:47:40 PM
From: Hawkmoon	6 Recommendations Respond to 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

To: basserdan who wrote (4327)	4/7/2009 6:40:13 AM
From: rrufff	1 Recommendation Read Replies (1) \| Respond to of 5034

Over the years, I've seen so many self-styled "cyber sleupps" play their shell game of claiming "no such thing," that it's encouraging to see this from the article you cited Iosco’s recommendations were endorsed by the G20 London summit last week ( tinyurl.com ). The G20 working group report on enhancing sound regulation and strengthening transparency noted concerns raised during the financial crisis that short selling, “in particular naked short selling, contributed to market manipulation, securities fraud, and disorderly markets”. The outcome is naked short selling looks likely to be history, or at least so restricted as to make it practically impossible, although the rules still have to be enforced. However, it also contains a dose of reality and a commentary that is useful every time you see someone claiming there are no NSS issues, often citing the "official" statistics What this all goes to show is that the whole shebang has become so complicated no one really knows what is going on. Let’s get proper transparency and a standardised approach so people can see clearly whether naked short selling is a problem or an aid to market efficiency.