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

To: Elroy who wrote (4963)	10/22/2013 4:22:34 AM
From: Savant	Respond to of 5034

The warrants go to the holder of record...which in the case of borrowed-shorted shares, would be the new owner of the borrowed-shorted shares. The short seller, (the intermediary) would incur the obligation of providing shares obtained from the open market to fulfill an exercise of the lender's loaned warrants. (ie it would be contract between the stock lender and the intermediary (short seller), and not between the lender and the company. If the original lender doesn't choose to exercise, the short seller doesn't have to cover the obligation. Ditto with dividends..the company doesn't issue two dividends, only one to the holder of record...the short seller has to deliver the 'dividend equivalent cash' to the holder of the stock. All IMO, contact your broker for further elucidation. In the case of naked shorting, I would surmise that the shorting agent would incur the same obligation, however, I'm not certain how the company sorts it out. Quite likely, since advance notice is usually given, the naked short would cover before the warrant issue date. Anyone else feel free to weigh in.