RJD Green Inc (RJDG)

[pantherj]

Naked shorts on RJDG?? Absolutely not and here is why

First, one needs to understand the mechanics of an OTC trade and that in order to maintain proper trade volume reporting accuracy, a trade with multiple legs in the trade would only be reported once in the volume reports. For example:

Investor A is long 100,000 shares and wants to sell. They enter the order through their broker which is then routed to a market maker. That market maker will go out and sell the stock into the market before they have bought the stock from you/your broker to close out their account. They do not take possession first as there is no guarantee they can sell the order into the market. By this Notice, the actual sale INTO the market is a naked short sale because the market maker sold the stock into the market BEFORE they had purchased the stock from you. It is a technicality since they know there position will be closed out seconds to minutes later when they go in and buy your shares. To avoid doubling up on trade volume and distorting the picture, only the sale into the market (NS) (consolidated tape) is recorded and not the second leg which was the sale transaction between seller and market maker.

That is why the short sale volume appears high but also why the FTD’s and bi-Monthly short interest reports are not showing any indications of this volume. The short isn’t really a short! It is the execution of a long sale by a market maker. The key language in the FINRA notice is this:

Quote:
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The Daily Short Sale Volume File will provide daily access to the aggregate volume of short sales in NMS Stocks and OTC Equity Securities reported to a consolidated tape and traded over-the-counter during regular trading hours on each trading day.

There are NO naked shorts on RJDG and never have been. The old naked short myth is the last refuge of a scam. Do not be fleeced!!