InterDigital Inc (IDCC)

[hock1]

jist1...

hock1, do we know that IDCC is being significantly impacted by naked shorts?

I am quite certain that, in the past, IDCC (like many small to medium companies) has been manipulated by naked short selling. To what extent it exists today, I don't know. Keep in mind that, due to the ability of "market makers" (i.e., every hedge fund and brokerage trading desks), to initiate short sales without first identifying and actually borrowing shares, naked shorts are a routine part of today's trading. Most of these shorts are covered before settlement and are used solely for the purpose of controlling (manipulating) share prices.

Would you say that naked shorting is essentially counterfeit stock?

Yes. There are essentially 2 ways of looking at these NS sales. (And there are a handful of lawsuits against brokerages and hedge funds defining the crime as such). 1) They are selling unauthorized securities. Only a company can issue its shares, after gaining appropriate consent from the SEC.
2) They are creating a form of derivative, not approved by the necessary authority.

Would stock buybacks stifle and expose the naked shorting? Your comments on these questions is appreciated.

No, not necessarily. Because no clearing agency (such as the DTCC) has a mandate to allow only the total number of outstanding shares, in any particular stock, to trade within the system. This is why I said that the only way to stem the use of NSS is to assign a number to each and every outstanding share.

Hope this helps.