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Re: bas2020 post# 72580

Thursday, 08/04/2016 1:43:20 PM

Thursday, August 04, 2016 1:43:20 PM

Post# of 458304
re: "...Though shorting in itself is not illegal, collusion and naked shorting ARE! "

Actually, market makers are allowed the special privilege of creating shares out of nothing and selling them like they were real shares in order to maintain liquidity and normal market volumes with the provision that they obtain and deliver real shares to replace the phony shares within a fixed time period. If they don't, they can then get a slap on the wrist for "failure to deliver".

Deliberately destabilizing the share price by means of sudden massive dumping certainly goes against this guideline. Also, years ago, I seem to recall "running the stops" to bilk investors out of their shares at a cheap price as being illegal but now it is just seems to be considered to be an unfavorable trading practice.

Just what the parameters constituting abuse within the trading industry's current self regulatory framework are and at what point it crosses the line into actual governmentally defined illegality isn't very clear. And maybe that's the problem.

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