Digital Brand Media and Marketing Group Inc (DBMM)

[Fai 2]

SEC Brings “Naked Short Selling” Case

By Toby M. Galloway and Jamie Lacy of Winstead

May 27, 2021

“Naked short selling” is often claimed by struggling public companies to be the source of their woes.  But there have been relatively few cases addressing naked short selling.  Recently, however, on   May 19, 2021, the SEC charged a broker-dealer (“BD”) with violating the order-making and locate provisions of Regulation SHO.[1]  Regulation SHO regulates short sales of securities and, broadly speaking, is aimed at minimizing naked short selling, failures to deliver, and other practices.

What is Short Selling?

According to the SEC’s Complaint, “[s]hort selling occurs when an investor borrows a security and sells it on the open market, planning to buy it back later for less money.”[2]  Thus, short-sellers profit from a decline in the price of a security.  This is in contrast to “long” investors, who profit from an increase in the price of a security.  Short selling is very risky: losses are unlimited because the price of a security can always increase.

What is Regulation SHO?..."

So Naked Shorting is ILLEGAL WHEN ABUSED. And then hedgies hide it!


https://www.natlawreview.com/article/sec-brings-naked-short-selling-case


Thank you DBMM/LINDA. Please finish sinking the KramerS