Anavex Life Sciences Corp (AVXL)

[jimmy667]

Naked shorting is legal for MM, the Madoff Rule. Called the Madoff Rule because it was put in place at the urging of Bernie Madoff (before the fall) to benefit Bernie Madoff and other favoured Market Maker cronies of the SEC.
Even after Bernie so famously abused is it is still in place for the benefit of the Market Makers so they have the liquidity to execute quick trades in thinly traded stocks, thereby making more money by being able to do more trades. It is rationalised as for the benefit of retail so they do not have to wait for trade executions and can trade more often, thinking they are doing well while being scalped a little of every trade by the Market Makers. There is little in place to keep MM from abusing this privilege as Madoff did. For instance, Goldman Sachs was recently fined and slapped on the wrist for loaning shares to short sellers and of course charging high interest, the problem was it was naked or counterfeit shares GS was able to create out of thin air by being 'a privileged holder of the rights' under the Madoff Naked Short rule.

Long AVXL.