ZNext Mining Corporation, Inc (ZNXT)

[emulwa]

After some research, this is my opinion. PAIM should have a total os 30 Billion shares outstanding (27 Billion/90%). The company has almost purchased the 90% of these share as per their plan. Now, After the 90% purchase (which will be confirmed pretty soon), there should only be 3 Billion shares left in the market as Outstanding Shares. Anything above this 3 Billion shares would be considered to be shorted shares and have to be bought back by the investors who borrowed them, or else the brokerage that issued them must buy them back.If these extra shares were not borrowed under the normal trading rules, then, they are considered to be "naked shorts".
Naked Shorting

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. However, some professional investors and hedge funds take advantage of loopholes in the rules to sell shares without making any attempt to borrow the stock.

On Oct 29, 2003, the SEC implemented a new rule to ban naked shorting in order to protect thinly traded stocks that are vulnerable to aggressive short-selling which would cause the stock price to fall. Critics of the new rule argue that if naked-shorting had not taken place during the micro-cap crime wave of the 1990s, such stocks would have climbed even higher before they crashed. Thus, the SEC's action to ban naked-shorting eliminated the only market force against over-hyped, or even fraudulent, small-cap and micro-cap stocks. http://www.investopedia.com

The total aggregate number of PAIM shares shorted in this time period is approximately 3.87 billion shares (according to yahoo Finance).