Let's clear some of the air about MMs. Part 2 A MM must sell short to make market, when they have no shares in inventory or don't have a matched seller. The problem with "naked shorting," is not so much the MMs themselves, as they are often required by regs to do so. http://www.investrend.com/articles/frame.asp?sUrl=/link_redirect.asp?Url=http://www.sec.gov/spotligh... The real problem with naked shorting is the lack of resolution via the DTC. If the DTC and especially the SEC did their duties, there wouldn't be a problem.
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