CMKM Diamonds Inc (fka CMKX)

[stockhound101]

Fung, if you were sold shorted or naked shorted share then technically you were never actually invested in the company itself. You unknowingly "believed" that you had purchased real shares of that said company, but you were actually only given a marker or a promise of being invested in that company. You were never issued anything of "legit" value from the actual company itself.
It's somewhat like buying a timeshare, but worse. In a timeshare you don't actually own anything either, you only have rights available to you for your payment. In the case of a shorted or naked shorted share where there is little difference in either, you are promised an option to actually own a real share. You can try and exercise an absolute option for that share by requesting the share in CERT form and even then it's not guaranteed that you will receive it or the broker that sold you the shorted share can at his discretion replace the shorted share with a real one at his expense and if a real share is available, but you have no "real" investment in that company until one of those two things are done.
To put it simply the company never benefited in anyway by your purchase of a shorted or naked shorted "fake" share and IMO can't be held liable for any monetary losses due to your owning that fake share, because that share was never issued or backed by the company or any of the companies supposed assets.
Your purchase could only benefit the person or persons that sold you that "fake" shorted share and it's their responsibility to back it's value the same as it's their responsibility for paying any dividends out of their own pocket to the owner of that shorted share when the company issues dividends for the actual real shares issued and backed by the company.
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Your baseless comment:
stockhound....you were looking for misinformation??? How about this to start with?....

The investor shouldn't be mad at the failed company even if that company he or she thought they were invested in was a scam, because he or she never was actually invested in that company. The brokers in which he or she placed their order through for real shares scamed them first by taking their money and then placing fake shares into their accounts without their knowledge.
The company never had any dealings or financial ties with the investor either directly or indirectly and thus can't be held liable for their loss.


Nutty as a pecan log.