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When you see "naked short selling" in a headline or story .. replace it with "counterfeit shares"
— kristen shaughnessy (@kshaughnessy2) April 21, 2024
Take the politics out of this story.
I will say it again and again, whether you like or can't stand Donald Trump, this story is about stopping fraud in our financial markets.… pic.twitter.com/V5gqK9X5sj
$DJT $FNGR @realDonaldTrump @DonaldJTrumpJr
— HAM (@HAMShortkiller) April 19, 2024
13 times we put a truck at the door of the SEC
They walked right by it. @GaryGensler
COUNTERFEITING is a CRIME enforce it pic.twitter.com/ZkH723ThsX
$FNGR $DJT @realDonaldTrump @DonaldJTrumpJr
— HAM (@HAMShortkiller) April 19, 2024
THE WORLD KNOWS and is shutting down the fraud
THE USA its all you can steal pic.twitter.com/5VsBy3Had9
We are thrilled to announce @FingerMotionInc (@Nasdaq: $FNGR) latest milestone in revolutionizing the electric vehicle charging landscape!
— FingerMotion (@FingerMotionInc) April 18, 2024
Our recent press release unveils our strategic move towards enhancing the accessibility and convenience of EV charging for subscribers of… pic.twitter.com/GPMIVmpBxG
$FNGR We deal in FACTS,
— HAM (@HAMShortkiller) April 11, 2024
Naked short data posted each day
Real Short data also
Toxic scumbag naked short is Lind Partners & freinds
Now a Special dividend to expose them pic.twitter.com/N7SBlc4nez
$FNGR heere is the CEO WATCh. LISTEN. We now have the special dividend.
— HAM (@HAMShortkiller) April 11, 2024
WHAT DEAL or good news is on the way?
Rumor on Street is a deal with $BABA Lets see what happens next.
215,000,000 Naked short and 1.5M real shorts to cover
and we all KNOW. https://t.co/qTsLxMpwok
$FNGR heard the conference went well yesterday. Rumor out of NY is major 150mil revenue deal is coming $BABA good luck shorts. Go fuck yourself
— Dirty Mayo (@DirtyMayo187) April 10, 2024
Let’s not forget that $FNGR went public at a valuation of $7 less than three years ago- and the company has made great strides since then!
$FNGR
— kristen shaughnessy (@kshaughnessy2) February 13, 2024
"..our stock price is a little volatile to say the least... the idea behind the warrant dividend is to reward those shareholders who have been with us for such a long time, they've been so patient with us growing...
We are walking with some of the largest business… https://t.co/aRytLl40KQ pic.twitter.com/NeqwCqKiNG
let's hope this is the move we've been waiting for !!
$FNGR presenting @LDMICRO in NYC Tuesday at 3:30PM EST. Nice institutional interest leading into the conference. pic.twitter.com/Y28oExQ7bn
— FingerMotion (@FingerMotionInc) April 9, 2024
See YouTube video from Arca today
I’m in it for the fundamentals- but some are yelling technicals…
FNGR.............................................https://stockcharts.com/h-sc/ui?s=FNGR&p=W&b=5&g=0&id=p86431144783
The SEC knows EVERYONE KNOWS
— HAM (@HAMShortkiller) April 5, 2024
WE are fighting the biggest FRAUD IN THE WORLD
the Counterfeiting of the Financial Markets $FNGR
America's dodgy financial plumbing Too big a fail count The sheer number of unsettled trades is rattling regulators https://t.co/McMKqy17Ff……
Exciting Developments in China's Tech Landscape! 🇨🇳
— FingerMotion (@FingerMotionInc) April 4, 2024
China is gearing up for the next big leap in technology with plans for 6G innovation to fuel industrial growth. As a leading player in China's mobile data industry, @FingerMotionInc (@Nasdaq $FNGR) is closely following these…
$FNGR
— kristen shaughnessy (@kshaughnessy2) April 3, 2024
Back on Reg Sho... not good for the counterfeit crooks@HAMShortkiller @WilliamPFarran1 @FingerMotionInc pic.twitter.com/douBoqKCNT
$FNGR Lind Partners the TOXIC DEATH SPIRAL Naked short sellers.
— HAM (@HAMShortkiller) April 2, 2024
210,000,000 plus 1,720,000 real shorts to buy back
and they havent bought 1 YET. pic.twitter.com/9y7ZIKibGB
I first identified short sales, stock lending and fails to deliver as primary problems in equity share trade settlement at DTC in 1993. https://t.co/Noo6eB2dSu
— Susanne Trimbath PhD (@SusanneTrimbath) March 28, 2024
The @MWCHub has been buzzing with discussions on cutting-edge #technologies reshaping the #telecommunications landscape. Among the key topics dominating the conversation are #ArtificialIntelligence (AI) applications across devices and networks, as well as advancements in 5G and… pic.twitter.com/F6dyC0Qf9A
— FingerMotion (@FingerMotionInc) March 27, 2024
Exciting developments in the realm of connectivity! While 6G may still be on the horizon, the race for innovation is already underway.
— FingerMotion (@FingerMotionInc) March 27, 2024
Despite the commercialization of 6G still being years away, nations are actively engaging in tests to gain a competitive edge. Samsung and other…
That's the way to fight back against nefarious made-up news reports
Trade Settlement mandates DON'T mean anything without enforcement.
— kristen shaughnessy (@kshaughnessy2) March 24, 2024
And trade settlement IS NOT enforced in the U.S.
It is a huge problem that threatens our financial system.
Because trade settlement isn't enforced, our financial markets are flooded with counterfeit shares.… pic.twitter.com/T7xbyGD97K
South Korea's Financial Regulators will inspect three securities companies this month in response to naked short selling complaints
— kristen shaughnessy (@kshaughnessy2) March 20, 2024
"A senior FSS official said, "It is to check whether securities companies with high frequency transactions are properly following the procedures… pic.twitter.com/uyAsaLSbIq
@FingerMotionInc second day at the prestigious 36th Annual @ROTHCapital Conference was filled with enriching conversations and valuable connections!@FingerMotionInc CEO Martin J. Shen and the @Skyline_CCG team, had great engaging discussions with industry leaders, #investors,… https://t.co/hP3ZszBFCJ
— FingerMotion (@FingerMotionInc) March 19, 2024
$FNGR Like $SHOT going after Capybara and Igor Appelboom.
— HAM (@HAMShortkiller) March 18, 2024
Lets say the Southern District is on our side thanks
Igor soon the game gets ramped up vs FRAUD https://t.co/VdYqunYAsR
China's financial regulators continue to crack down on counterfeit shares and financial fraud.
— kristen shaughnessy (@kshaughnessy2) March 16, 2024
Here in the U.S. $MMTLP investors can't get any answers after 15 months of imploring financial regulators and Congress to help them
"Regulators reiterated pledges to prevent and… pic.twitter.com/7fK4iBQmkj
📱Unlocking the Future of Telecommunication & Big Data! 🌐 @FingerMotionInc (@Nasdaq: $FNGR) is leading the charge in revolutionizing #mobile #technology.
— FingerMotion (@FingerMotionInc) March 11, 2024
Our innovative approach is reshaping the landscape of telecommunication and big data, propelling us from a mobile data… pic.twitter.com/kmrkX5RBg2
India's Financial Regulators Impose New Rules After Short Seller Attack and Hedge Funds Don't Like It.
— kristen shaughnessy (@kshaughnessy2) March 10, 2024
"Hedge funds are threatening to pull investments from India because of controversial new rules introduced in response to last year’s short seller attack on Adani, one of the… pic.twitter.com/WTHKqYEimN
A3: If you think you may be a victim of investment fraud, report it to the SEC’s Tips, Complaints, and Referrals (TCR) System. https://t.co/mvga0lJg3A#NCPW2024 #SlamTheScamChat https://t.co/DMGORRH5G6
— U.S. Securities and Exchange Commission (@SECGov) March 7, 2024
Add Pakistan's financial regulators to the growing list of countries fighting counterfeit crooks. They have filed criminal charges in alleged stock market manipulation case.
— kristen shaughnessy (@kshaughnessy2) March 7, 2024
"The Securities and Exchange Commission of Pakistan on Wednesday filed a case against the suspects… pic.twitter.com/RWh0tEGgnr
Is it that every company and every CEO who takes money from Lind Partners is bad or is Lind Partners a toxic lender looking to make money by destroying companies? Go down this thread and see what you think. https://t.co/z4gAtjVge8
— kristen shaughnessy (@kshaughnessy2) March 4, 2024
India's financial regulators recently put new short selling rules in place after last year's alleged "short and distort" piece by Hindenburg Research last year resulted in billions in losses for the Adani Group.
— kristen shaughnessy (@kshaughnessy2) March 3, 2024
"...One critical safeguard implemented by SEBI is the mandatory… pic.twitter.com/iihbBW8txh
This is just the beginning of criminal prosecution for illegal naked short selling
Play by the rules, and you have nothing to worry about. Turn yourself in and be a Whistle Blower to make a better deal for yourself. Their is noware to hide we all know what's going on here in the equity markets.
$GTII $FNGR $WULF $KNW $TELO $ZJYL $GDC $OPK $BLUE $GERN $RWLK $PXMD $TSLA $GME $AMC $XXII $VUZI $CYDY $ROOT $NVDA $IBM $WMT $CVM $NWBO $CAT $CEI $MULN $SYTA
— HAM (@HAMShortkiller) March 2, 2024
Naked shorts now going to Jail in Hong Kong https://t.co/Ho5XFKBjOr
$FNGR NOT 1 share covered of the naked short
— HAM (@HAMShortkiller) March 1, 2024
210,000,000 total
1,730,000 real short they covered 70K. The naked short sold to real short since there are no sellers BUT them pic.twitter.com/2oEA3rNtOS
China's financial regulators suspend a hedge fund
— kristen shaughnessy (@kshaughnessy2) February 29, 2024
"China has slapped a trading suspension and fines on a hedge fund firm for high-frequency trading in index-futures contracts, signalling that a crackdown on so-called quantitative investments has widened to financial derivatives… pic.twitter.com/EnwP01M8ir
In after hours 5442 trade to 5442 trade what is that spoofing manipulation black market dark pool naked shorting BS going on
I'll say it again: This board is NOT about South Korean, Chinese, or Thai stocks or stock markets.
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The Truth About Naked Short Selling
By JOHN OLAGUES
Full Bio
John Olagues has spent 15+ years as the owner of Truth in Options and 13+ years as president and owner of Olagues Trading Company.
Learn about our editorial policies
Updated October 24, 2023
Reviewed by THOMAS J. CATALANO
Fact checked by SUZANNE KVILHAUG
The basic form of short selling is selling stock that you borrow from an owner and do not own yourself. In essence, you deliver borrowed shares. Another form is to sell stock that you do not own and are not borrowing from someone. Here you owe the shorted shares to the buyer but "fail to deliver." This form is called naked short selling.
Naked shorting is the illegal practice of short-selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow a stock, or determine that it can be borrowed before they sell it short. Due to various loopholes in the rules, and discrepancies between paper and electronic trading systems, naked shorting continues to happen.
These short sales are almost always done only by options market makers because they allegedly need to do so in order to maintain liquidity in the options markets; however, these options market makers are often brokers or large hedge funds who abuse the options market maker exemption.
KEY TAKEAWAYS
Naked short selling occurs when you sell short without having properly located and borrowed the shares to be sold.
To sell short, you normally have to borrow existing shares from your broker or clearing firm.
Naked shorting is illegal per Regulation SHO and can lead to a failure to deliver (FTD).
1
Shorting Without Failing to Deliver
There is another form of short selling, sometimes called a synthetic short. This involves selling call options or buying puts. Selling calls makes you have negative deltas (a negative stock equivalent position) and so does buying puts. Neither of these positions requires borrowing stock or "failing to deliver" stock.
A collar is nothing more than a simultaneous sale of an out-of-the-money (OTM) call and the purchase of an OTM put with the same expiration date. Another way to short sell is to sell a single stock future, a type of equities derivative not traded in the U.S. since 2020.
2
Prepaid forwards and swaps are sometimes used to carry out short sales; however, these are done directly between the customer and a bank or insurance company, many of which have become suspect in terms of their ability to guarantee the other side.
Holding any one of the above positions alone or in combination with another essentially gives you a negative delta position whereby you will profit if the stock goes down.
Margin Requirements and Money Transfers
The following is exactly what happens when you do a short sale as mentioned above. You decide to sell some shares that you do not have because you may wish to reduce the risk of other long positions that you may hold or you wish to make naked bets that the stock will go down.
For example, you borrow shares that you wish to sell short and you instruct your broker to sell 1,000 shares at $50. Upon the sale, the $50,000 is credited to your broker's account (not your account as some may think. This distinction is important).
Then you must advance the required initial margin into your account to guarantee to the broker that there is money in your account to cover any loss you may incur if you lose on the short sale. The short seller must maintain the minimum maintenance requirement in their margin account.
Of course, if the short seller is the broker, then both the broker's account and the short seller's account are essentially the same.
SEC Regulation SHO is a 2005 rule that governs short selling and bans naked shorts.
1
The broker earns interest on the lending of the proceeds of the short sale to other margin customers. That lender becomes the short seller when the broker is the short seller. When the broker acting as an options market maker does a naked short sale, they need not borrow shares and instead collect all of the interest on the proceeds for themself.
If the stock goes down after the sale of the 1,000 shares at $50—say to $45—then $5,000 is moved from the broker's account to the short seller's account, which can be removed by the short seller. Their margin requirement goes down by 50% of the $5,000.
On the other hand, if the stock goes up to $55, then $5,000 is moved from the short seller's margin account to the broker's account and the short seller's minimum maintenance requirement will increase.
These money transfers take place exactly the same way whether you do a regular short sale or a naked short sale. There are similar future transfers if you have sold calls or sold single stock futures. When you buy puts and fully pay for them, there are none of these money transfers after the purchase, although the value of your account certainly fluctuates as the value of the puts fluctuates.
All of the above ways to obtain negative deltas cause pressure on the value of the stock similar to how straight sales of long stock put pressure on the price of the stock. In addition, these short-selling methods are sometimes used by those who have inside information about some negative future event to illegally profit by selling or shorting stock prior to the announcement of that future event.
Combinations of the above positions with long positions, where summed net short equivalent stock positions are created, are often used to disguise illegal insider trades.
Media Pundits
Naked short selling was criticized by some in the news media who claimed that naked short sellers allied with "rumor mongers" caused the collapse of Bear Stearns and Lehman Brothers. They cite the large "failure to deliver" for a stock as evidence of naked short sales days after the stock had dropped.
Although the naked short sales happened after the collapse, they still hold onto the idea that those after-the-event naked short sales caused the collapse.
3
The large volumes of "fail to deliver" stock and the naked short sales after the collapse of Bear Stearns and Lehman Brothers show that there is an explanation for those large volumes; however, that strategy did not cause the collapse of those companies.
4
When Shouldn't You Short Sell?
It is recommended that new traders do not short sell as it is a much more involved and risky type of strategy that comes with a variety of rules. Only experienced traders should attempt to short sell and only when they have done the required research to justify their positions.
What Triggers a Short Sale Restriction?
Short selling a stock is restricted when the stock's price drops 10% or more than the previous day's closing price. The rule was implemented by the SEC to preserve market confidence and efficiency.
5
How Long Should You Hold Onto a Short Sell?
Traders should hold onto a short sell for as long as that trade is profitable. Once the trade stops being profitable, or, more likely, starts to move away from being profitable, the trader should close out their short sale.
The Bottom Line
Naked short selling is risky and not allowed, yet continues to happen in the market place. Traders and investors should always trade in a manner that takes risk into consideration while employing safety measures in their trades.
https://www.investopedia.com/articles/optioninvestor/09/naked-short-selling.asp
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