Posted on 09/03/2005 8:02:05 PM PDT by abletruth
paranoia about things people don't undertand alert.
all shorts are pond scum
Spitzer too will pass.
For a minute there, I thought you were going to tell us that Global Crossing had made it to the indictment stage.
Traders and market makers do this all the time when they think a stock is headed down - and they get clobbered when it goes up in spite of their best efforts to drive it south!
invisible I don't think you understand, the markets have 18% of all shares as FTD daily..."Failed To Delivers" so the counterfeiting is rampant, seems the only people that don't believe there is a problem work for the brokerages, we need to go totally electronic.
Watch the Congress get involved soon because there is one company that has legally proved there are over one trillion shares of it's stock floating around as markers in accounts in 64 countries....Yea that's One Trillion with 15 zeros...
abletruth
My first thought is that if the buyer knows that he's not getting the stock, then who cares whether the shares actually exist?
All they are doing is placing a bet on where the price is headed.
Of course, if the buyer doesn't know that the shares don't exist, then that's another matter.
What a b.s. article. There is nothing inherently immoral in uncovered short sales by third party investors. The concerns are simply first, suitability and second, credit. Brokers already have a legal obligation to ensure that unsophisticated customers are not making trades that are unsuitable for them, which may well include short selling, depending on the circumstances. And institutions are required by margin regulations and their own prudent self-interest to make sure investors have enough assets to cough up their losses on short-selling, if they guess wrong, because the exposure in theory is limitless.
This is Naked Shorting not Shorting, now it is just referred to as counterfeiting because that is what it is. The DTCC allows he stock borrow program but doesn't enforce the shares to be returned?
Ask some companies like Delta Airlines, Krispy Kreme, Onmi Media, Casavant Diamonds. 85% of all hedge funds are located in the Caymans...it is not for the sun and fun.
able
all over the map here. going totally electronic, ah, yes, this is a panacea, isn't it? I've decided that's The New Utopia. Once everything is electronic, everything will be OK.
short selling is as misunderstood a subject as there is. Already on this thread there are "hang all shorts" posts, when really it seems that, if there's a problem, it's counterfeiting, which is a different animal altogether.
invisible...I am not talking about legal short selling. I am talking about naked short selling...as you say two diffewrent animals. The proof is abundant and about to be made public.
A Statement by Bear Stearns' General Counsel Bill Philek -
By DP
On the December 13, 2004 Conference Call regarding regulation SHO, with Peter Murphy, senior managing director of the Bear Stearns Clearing Division in attendance as part of the panel (as recorded and available as audio here - requires Windows Media Player):
"To give you that brief introduction in Reg SHO, the history (of) how we got to where we are today. For the past few years we have been hearing from many different regulators regarding their concerns about the increase in the level of fails that they are seeing. They believe, and they have stated on numerous occasions, that one of the primary causes of the high level of fails was that various participants in the short sale process, prime brokers, executing brokers, clients, were not following already established rules."
Here it is, in black and white. Proof positive that the regulators are aware of violations, are concerned about the increase of violations, and know the cause, and the culprits.
This implicates the entire broker/clearing house/hedge fund network in securities violations, without enforcement actions by Regulators, who instead looked the other way. Exactly what these high level of fails and illegal short sales did to the markets will be determined in State and Federal courts across America. This also implicates the Regulators in aiding and abetting the fraud.
So for any elected officials who doubt that the NCANS take on the problem is, if anything, less alarmist than the situation deserves, I would direct you to the above statement and caution you to think long and hard as to the chronicle of abuses it confirms.
And then decide whether you are part of the problem, or part of the solution.
The source of the info below is www.ncans.net
Short sales are nothing new. Where's the fire?
I worked at a medium sized brokerage in Seattle in 96. One of the reps created 2 large short positons, pending delivery. Well, the client never delivered and the stocks, went up. The firm lost 15 million, fired the broker.
Story was in the papers, and in the WSJ too, if I'm not mistaken. The client was illegally selling short, but since the stock went up, didn't cover. Not sure what happened to the client, but the broker got a job at another firm, saw him recently.
You can sell, and you can sell short. You're only allowed to sell short on upticks and there must be borrowed shares available. Naked short selling is illegal, for good reason.
I wish I could understand what you are dicussibng.
Is there any way it can be explained so am elderly person who does understand short selling or I guess buying.
I means, to me, one just bets weather a stock is going up or down, you are in reality just betting. like gambling. Please try to explain it so I will at least have a general idea.
selling short means selling shares you don't own, that someone has lent you. That is generally a speculative position although one can imagine times when it would be hedging to do so. The shares must either be delivered or repurchased to close out the short position.
naked short selling means this is done without any clothes on. ha ha -- just kidding. naked short selling means that you haven't borrowed the shares you're selling short. that is fraudulent and is not a new activity.
I Believe it = If you have a real time trade screen watch MRKL trade 10-20 million shares in a day (90 Mill) float day after day.
If you are tuned in to how stocks trade you will see a manipulated stock after watching the trades for 5 min. It trades like there is 10 billion shares float.
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