Silicon Investor (SI) -- The First Internet Community

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.

Gold/Mining/Energy : Zentek Ltd - ZEN -- Ignore unavailable to you. Want to Upgrade?

To: clear who wrote (4047)	10/6/2013 2:35:16 PM
From: Cogito Ergo Sum	2 Recommendations Recommended By cole steel kidl Read Replies (1) \| Respond to of 22862

The shares sold short are 'borrowed' .. naked shorts happen because the 'regulators' cough cough cannot keep up with the technology.. That is exactly why shorting was banned *period* on selected stocks during the financial crisis.. the powers that be.. are pretty powerless in that regard... naked shorts.. occur when there are no actual shares to borrow (or they just don't bother) but the sales goes though anyway...

To: clear who wrote (4047)	10/6/2013 3:20:25 PM
From: hoov	1 Recommendation Recommended By copperknob Read Replies (2) \| Respond to of 22862

Shorting is just like borrowing cash. If you borrow cash from the bank, you have an obligation to repay on some specified schedule, but you're free to do what you want to do with the cash. You can spend it. If you borrow shares (go short) you are free to spend them,also. You can sell them to the active bidder. The shares can be repaid later. What happened last week was a total set-up. Shorters drove the SP below $3, and thereby triggered margin calls on anyone who had leveraged their ZEN shares. Those individuals became forced sellers, increasing the selling momentum, and guaranteeing that those who went short could buy back cheaper shares. But the shorters weren't content with just that. They also took out a number of stop-loss orders along the way, before they allowed the price to start to rise again. The net effect was that short-sellers stole the shares from longs, and at a discounted price. And if they covered the short the same day, there is nothing to report. Blood suckers. Lar