KMA Global Solutions International (KMAG)

[ROOKIE602]

Looks like we will find out at the meeting how many "markers" will get called in or if they slipped thru the net IMO! Here is a bit more info on whats coming IMO on the Naked shares that don't exist in KMAG!!

"• Many investors that think they have "shares" in their brokerage accounts, don't. They have "markers" that have no underlying share to validate them. Some call these "counterfeit shares", with good reason. The technical term is "Securities Entitlement."

• UCC8 mandates that all Securities Entitlements have a genuine share on deposit at the DTC, or in the broker's possession, for each Securities Entitlement. That rule is ignored by the SEC and Wall Street.

• The DTCC, via Cede & Co., is the registered owner of all shares held in "Street Name," which are all shares in margin accounts.

• Margin accounts represent the bulk of independent investor account types.

• Registered owners are free to use their "property" as collateral for loans or debt.

• It is unknown what, if any, loans or debts are collateralized by the stock "owned" by the DTCC.

• The DTCC's "Stock Borrow Program" lends shares to be delivered to buyers, if sellers fail to deliver.

• The Stock Borrow Program is operated on the honor system, and is anonymous.

• It allows one genuine share to be lent multiple times, leaving a string of markers/IOUs in the share's wake.

• This creates a systemic risk for the stock market, as more markers are in investor accounts, falsely represented as shares, than shares actually authorized by the companies.

• These markers are freely traded and treated by the system as real, resulting in a large secondary market of counterfeit shares - resulting in depressed stock prices.

• With paper certificates being eliminated - by the DTCC - there is no way to confirm that a share is genuine, versus a bogus marker.

• There is nothing to stop your broker from taking your money, and merely representing to you that you bought shares, without ever actually buying them. You have no way of knowing the difference, barring demanding paper certificates for your property."

KMAG SOLID!!