Tuesday, December 09, 2014 3:08:09 PM
As for naked shorts, if you purchased shares legitimately from someone that has naked shorted, do you keep your shares if they do not exist in the first place? Does the long shareholder get paid out by the naked shorter or does the long get screwed with the naked shorter? If they are forced to cover at open market to compensate, what if there is not enough shares on the ask? The shares have to come from somewhere without affecting the existing float size.
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