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Sunday, 05/12/2024 11:32:19 AM

Sunday, May 12, 2024 11:32:19 AM

Post# of 44864
This particular quote is taken directly from the SEC's own explanation in the link:

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.



Compare those words directly from the SEC to the recent filings and gripes by Nunes about alleged naked shorting, and then to the company fundamentals. The SEC and Florida AG are likely laughing their asses off about these tactics because they've seen it all before. The stock will go down because the company makes no money and the fundamentals suck. The SEC explains this issue directly as well:

Investors should always use caution before investing in high-risk, speculative stocks, especially with regard to their retirement portfolios, because all stocks may decline in value. There are many reasons why a stock may decline in value. The value of a stock is determined by the basic relationship between supply and demand. If many people want a stock (demand is high), then the price will rise. If a few people want a stock (demand is low), then the price will fall. The main factor determining the demand for a stock is the quality of the company itself. If the company is fundamentally strong, that is, if it is generating positive income, its stock is less likely to lose value.



Both quotes are in response to Question 2. Is "naked" short selling the reason my stock has lost value? The entire link again is here:

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