EFuel EFN Corp (EFLN)

[Karma11]

http://www.investopedia.com/terms/n/nakedshorting.asp. In 2007, the Securities and Exchange Commission (SEC) amended Regulation SHO to further limit possibilities for naked shorting by removing loopholes that existed for some broker/dealers. Regulation SHO requires lists to be published that track stocks with unusually high trends in "fail to deliver" shares. Some analysts point to the fact that naked shorting, albeit inadvertently, may help markets stay in balance by allowing the negative sentiment to be reflected in certain stocks' prices.

Participants in naked illegal short selling activities can be charged with a crime based on the SEC regulations. In 2014, two Florida State University professors were charged with participating in the illegal practice that resulted in approximately $400,000 in revenue. Ultimately, the accused agreed to a settlement with the SEC in the amount of $670,000.



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