Forwardly Inc (FORW)

[surfkast]

You are just too funny!
Keep believing in naked shorting buying up shares.

Learn about MM's and learn about reg SHO. I have posted some excerpts. Do some real DD! I gave you the lead.

A market maker is an individual or broker-dealer that operates on a stock exchange, buying and selling shares for their own account. Market makers earn a profit both from collecting the spread between the bid and ask prices of a security and also from holding inventory of shares throughout the trading day.

Market making is not simply a form of arbitrage. Market makers take considerable risk by being willing to buy and sell in volatile market conditions. Sometimes, if a company's stock plunges and then continues to decline, for example, market makers can suffer outsized losses holding inventory of a rapidly falling equity.

https://seekingalpha.com/article/4517979-what-are-market-makers

“Naked” short selling is not necessarily a violation of the federal securities laws or the Commission’s rules. Indeed, in certain circumstances, “naked” short selling contributes to market liquidity. For example, broker-dealers that make a market in a security generally stand ready to buy and sell the security on a regular and continuous basis at a publicly quoted price, even when there are no other buyers or sellers. Thus, market makers must sell a security to a buyer even when there are temporary shortages of that security available in the market. This may occur, for example, if there is a sudden surge in buying interest in that security, or if few investors are selling the security at that time. Because it may take a market maker considerable time to purchase or arrange to borrow the security, a market maker engaged in bona fide market making, particularly in a fast-moving market, may need to sell the security short without having arranged to borrow shares. This is especially true for market makers in thinly traded, illiquid stocks as there may be few shares available to purchase or borrow at a given time.

There also may be instances where a company insider or paid promoter provides false and misleading excuses for why a company’s stock price has recently decreased. For instance, these individuals may claim that the price decrease is a temporary condition resulting from the activities of “naked” short sellers. The insiders or promoters may hope to use this misinformation to move the price back up so they can dump their own stock at higher prices. Often, the price decrease is a result of the company’s poor financial situation rather than the reasons provided by the insiders or promoters.

“Naked” short selling, however, can have negative effects on the market. Fraudsters may use “naked” short selling as a tool to manipulate the market. Market manipulation is illegal. The SEC has toughened its rules including through the adoption of Rule 10b-21 in 2008, referred to as the “naked” short selling antifraud rule, and is vigilant about taking actions against alleged wrongdoers.

Failures to deliver that persist for an extended period of time may result in a significantly large unfulfilled delivery obligation at the clearing agency where trades are settled. Regulation SHO is intended to reduce the number of potential failures to deliver, and limit the time in which a broker can permit a failure to deliver to persist. For instance, as explained above, Regulation SHO generally requires firms that clear and settle trades to close out a failure to deliver resulting from a short sale by the beginning of regular trading hours on the settlement day following the trade date.

https://www.sec.gov/investor/pubs/regsho.htm