Elite Pharmaceuticals Inc (ELTP)

[WeeZuhl]

How can we expect counterfeit shares (short/naked shorted) be reported? That explains the recorded discrepancy. No?

If you sell me shares that don't exist, or if you are unable to buy/borrow shares to cover a short sale, then those shares will be missed when they don't show up. My broker is going to expect the correct number of bona fide ELTP shares to show up within three days, and when they don't, it becomes a failure-to-deliver. Market makers get longer to clear the sale, so they can behave more sketchily, but they eventually have to send a share for every share sold. FTD's are reported on the RECEIVING end of the sale, and then all FTD's are reported to the public every two weeks. There are ways to confuse the system, and maybe not every fraudulent transaction will get reported as an FTD, but if there's a lot of shenanigans, then there will be a lot (more) FTD's. The trend is your friend, so watch for changes. If there are fake shares or uncovered naked shorts, then it will eventually result in a cascade of FTD's. The lack of FTD's for ELTP suggests minimal counterfeiting and minimal naked shorting.

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