Puration Inc (PURA)

[redwagon]

Here is some more information on short interest:

http://otcshortreport.com/company/PURA?index=usmj

The 77,000 shares was reported as of 9/15/17, but around 5 million naked shorts shares have been sold since the last report 9/15/17 through yesterday. The volume of shares traded and the % of those shares being sold short has increased dramatically.

What is 'Naked Shorting'
Naked shorting is the illegal practice of short selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow a stock, or determine that it can be borrowed, before they sell it short. Due to various loopholes in the rules, and discrepancies between paper and electronic trading systems, naked shorting continues to happen.
BREAKING DOWN 'Naked Shorting'
With naked shorting, an investor sells shorts associated with shares that they do not possess and have not confirmed their ability to possess. If the trade associated with the short needs to take place in order to fulfill the obligations of the position, the trade may fail to complete within the required clearing time because the seller does not actually have access to the share. The technique is seen as very high risk, regardless of its associated legal entanglements, but has the potential to yield high rewards.
While no exact system of measurement exists, most systems point to the level of trades that fail to deliver from the seller to the buyer within the mandatory three-day stock settlement period as evidence of naked shorting. Naked shorts may represent a major portion of these failed trades.

Naked Shorting and Liquidity
Naked shorting can affect the liquidity of a particular security within the marketplace. In cases in which a particular share is not readily available, naked short selling allows a person to participate within the associated activity even though they are unable to actually obtain a share. If additional investors become interested in the shares associated with the shorting, this can cause an increase in liquidity associated with the shares as demand within the marketplace increases.



Read more: Naked Shorting http://www.investopedia.com/terms/n/nakedshorting.asp#ixzz4uZv7Skvy