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Re: lowman post# 19523

Friday, 08/17/2007 1:20:00 PM

Friday, August 17, 2007 1:20:00 PM

Post# of 51429
Shorting for the pinks and bb is already criminalized. Nearly all of the shorting activity is MMs leaving open sales positions. This is against regs and does have penalties. They must cover within 5 days and I have no problem with that. But, the SEC has no oversight of the regulations and so the MMS are in effect self-regulating. I believe that the majority follow the rules, but there are a few who see minor dilution and immediately supplement that flow of new shares into the market with air shares. There is no intent to find shares to cover their open positions because they are certain that the SP will not treturn to pre-dilution levels, and if it does, then they simply dump more air shares to drive down the price.

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