Digital Brand Media and Marketing Group Inc (DBMM)

[Stock_Barber]

I have explained this based on my understanding after discussions with some pretty smart people... Let me try again!

"Naked shorts" refers to 2 different things to stonk traders!

There is a simple "failure to locate" naked short. Basically, that is a sloppy or corrupt broker. And yes, the client pays margin because, as far as they are concerned, it isn't naked. They can get a margin call from their broker if the price goes up beyond the $2.50/share of margin that they already have.

Then there is the "counterfeit share" naked short. This would be a corrupt broker dumping shares that don't/never existed for their own account. They don't pay margin because they don't have to. They would effectively have to pay it to themselves! Since it is the broker that issues the margin call to the client, who would give them a margin call? This type of naked short is not something that can get a margin call. It can. however, get a call from the SEC...

Clay was discussing the first case...

Neither case has any relevance to DBMM to my knowledge!

.