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Microcap & Penny Stocks : Rocky Mountain Int'l (OTC:RMIL former OTC:OVIS) -- Ignore unavailable to you. Want to Upgrade?

To: Angel D who wrote (42383)	2/23/1998 9:53:00 PM
From: Skeeter Bug	Respond to of 55532

>>riley, can you explain something for me and maybe some of the other novices.<< you mean like pugs ;-). hate to break it to you but the penny stocks are the realm of novices. all those with experience are too smart to play this rigged game.

To: Angel D who wrote (42383)	2/23/1998 9:57:00 PM
From: Arcane Lore	Respond to of 55532

Angel: As noted in #reply-40447: "It is my understanding that market makers can legally short the stocks in which they make a market if they have none currently in inventory. The illegal aspects, if any, of their activities would therefore appear to come into play only in the maintenance not the initiation of a naked short position. To maintain the short position, the short market maker would appear to have only three options at settlement time: (1) Buy in the shares. (2) Borrow the shares for delivery to the purchaser(s). (3) Fail to deliver the shares (forever??) using some sort of maneuver. I have found no SEC cases involving perpetual 'failure to deliver' on the short side. Interestingly, I did find one case on the long side where the defendant, a private citizen - not a market maker, attempted to maintain a partially 'virtual' long position by a process similar to check kiting. See: sec.gov " To date, no one has come forward with an SEC enforcement action involving illegal naked shorting of the type alleged for RMIL (naked short position greater greater than twice the public float maintained for 6 months).