Umax Group Corp. (UMAX)

[StockWatcher]

DTC is the Depository Trust Company which is a Subsidiary of the DTCC, Depository Trust Clearing Company. It is the Clearing Agency for all Securities traded on all Exchanges. It is part of the Federal Reserve. So it keeps track of all securities traded, how many shares so forth and then tracks the settlement of those shares.

http://www.dtcc.com/about/businesses-and-subsidiaries/dtc

http://www.investopedia.com/terms/d/dtc.asp

That is where all the deposited securities go, so when you deposit a Certificate for say 1,000,000 Shares, then it is recorded through them, and now those 1,000,000 shares are in the Market to sell by you and be purchased by someone else.

The deposited shares become part of the FLOAT, which is now in the trading Market through the OTC Exchange Service.

So unless the shares are deposited at the DTC, they are not in the FLOAT and are not able to be traded. Certificates with a Restricted Legend cannot be deposited, but once it is recorded the MMs do short against them which is illegal of course because they are not deposited. But they do it anyway, which is how they create their short positions. But they cannot settle the Naked Shares because those shares are not at the DTC. They are supposed to buy those shares back in the open market until the Naked Position is no longer in existence which balances the books. When they Naked Short, they are adding FICTITIOUS SHARES into the Market that are not real, which then in turn devalues the stock with what would appear to be dilution. But in most cases it is not. It is MMs cheating the system and us out of our money.

When we do see a stock start to truly run in a vertical motion on a chart that is when a SHORT SQUEEZE is in effect and it rarely happens. But if you had a few horses come in and start hammering the BID and ASK, You would see that awesome feeding frenzy when the computer systems go crazy after a certain criteria is met from some trigger point which is the PPS that puts their position in a losing money status. Then the buying frenzy kicks in and it is each MM for themselves to try and get their Naked Short position cleared. LEXG was a prime example.

If Naked Shorting were ever truly stopped and erased from the systems to where they could not longer Naked Short, then you would see stocks SCREAM upwards in a heartbeat like they used to in the 80s and early 90s.

I hope that someday soon the SEC and FINRA pull their heads out of their asses and correct the Monster they created. Which is to create an ILLEGAL Market allowing ILLEGAL Trades by Criminal Organizations called Market Makers.

They could do it with the flip of a switch, they just do not want to. They are also making money off of the Dark Pools as well.

Hope that helped.

SW