FOR IMMEDIATE RELEASE* NAKED, SHORT AND GREEDY
STP Advisory Services, LLC
2118 Wilshire Blvd. #596, Santa Monica, CA 90403
*FOR IMMEDIATE RELEASE*
ARE INVESTORS PAYING FOR STOCKS THEY DON’T RECEIVE?
Attend An Eye-Opening Event In Los Angeles on October 19, 2006: NAKED, SHORT AND GREEDY: Is Wall Street Abusing Short Sales?
Los Angeles, CA
What damage is done to investors when the system routinely
tolerates stock-delivery failures? Should more be done to stop short-selling abuses?
Two class action lawsuits were filed in April 2006 in Manhattan federal court, byan electronic trading exchange and by a hedge fund, against eleven large primebrokers. The plaintiffs allege the defendants conspired since 2000 to transactshort sales without delivering shares to buyers. If true, American investors who
paid for tens of millions of corporate shares actually hold nothing but electronic entries.
In 2004, after years of complaints that naked short sales, i.e., short sales that fail to deliver the shares sold, were systematically attacking and destroying share prices, the Securities & Exchange Commission (SEC) adopted Regulation SHO. But Regulation SHO did not enforce strict requirements to deliver shares in a timely manner. It allowed existing failures to remain undelivered, tacitly permitting lax treatment of stock-delivery failures by brokerages, stock exchanges and
clearing organizations.
Important Questions Will be Discussed
Has the SECs lax enforcement of clearing and settlement procedures created systemic risk in the United States capital markets? Does the failure to provide final delivery for stock trades undercut the rigor of investment analysis and victimize portfolio management? Are billions of dollars in investment value being drained from ordinary investors in the stock market? Does the solution lie in requiring daily reporting on stock-delivery failures and tighter stock borrow requirements? Are pension funds and individual investors already
exposed to enormous losses? These questions and related issues will be discussed by three highly qualified speakers
at this enlightening event.
The Panelists
Dr. Patrick Byrne, CEO of NASDAQ-traded Overstock.com, will discuss the effects on a company of high volume trading in shares apparently exceeding the number issued and outstanding, and the unwillingness of Depository Trust & Clearing Corporation to disclose data on stock-delivery failures.
Arne Alsin, portfolio manager and financial writer, will share his insights, reflecting upon how naked short sales generate phantom shares, and how this changes the risks and valuations portfolio managers and analysts must consider.
Dr. Susanne Trimbath, a research economist with operations management experience in financial services, will explain how abusive trading practices can exploit loopholes in
the stock settlement system, allowing buyers funds to be cleared for transfer to sellers without actual delivery of shares.
The Panel will be moderated by Wayne Jett, Managing Principal and Chief Economist, Classical Capital LLC, a registered investment advisory firm.
The Specifics
This important event will take place on Thursday, October 19, 2006 from 7:30 a.m. to 11:00 a.m., at the elegant Park Hyatt Los Angeles located at 2151 Avenue of the Stars in the Century City area of Los Angeles, California. Registration for the event
will be $45 in advance (register before October 18), $60 at the door. For further information (and secure online registration) go to: www.STPAdvisors.com/events.html
About the host: STP Advisory Services, LLC, is based in Santa Monica, CA. STP advises clients on capital markets, real estate and the economy.
Press Contact: Irina Somerton
Somerton Public Relations & Public Affairs
Phone: 310 461 1416
Fax: 310 461 1304
Email: IS@SomertonPRPA.com
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