NAKED SHORTING...MUST READ!!

[Marketdow]

I know this is a very old post but there are some parts of this post that are inaccurate. First as a market maker when you are naked shorting a stock its usually against an order you are covered on at a higher price. Obviously these penny stocks don't all have ordered covering them a little higher up but they do still have to short from the open market. Someone must buy the stock for them to short and at least for us, when there is enough buyers in a symbol and its clear the stock is going to go, the powers that be will normally see the positions your holding and fore you to take the stock in. there are clearly less legitimate MM out there that are doing the things you mentioned but they aren't just creating stock for shorting. They are shorting it from the orders that come in. I think there should be a rule where they can only short a percentage of the average volume at one time or some kind of fair practice to stop hurting these new companies that get the attention they need once in a while and end up sizzling out because they are held down.
Thanks for the post
Frank