MMEX Resources Corp (MMEX)

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MMEX naked shorting...

It's naked shorting, a manipulative practice that enables traders to defy the laws of supply and demand, that regulators are trying to stop.

In a naked short sale, a trader places short bets without actually borrowing the stock first or even determining that any shares are available to borrow. This way, the traders are freed from a key check of the short-sale process -- the need to find willing stock lenders. Critics claim such operations create excessive downward pressure on certain stocks and can create chaos as buyers await undeliverable shares.

Left unchecked, naked shorting can lead to an irregular situation in which the total number of shares sold short on a stock exceeds its float, or the number of shares available for trading.