Global Diamond Exchange, Inc. (GBDX)

[REVOLUTION2012]

According to numerous sources, short selling in the market is not uncommon. Press releases from many companies affected by short sellers address this topic in great detail which is a growing problem within the securities markets, especially the Over the Counter Bulletin Board. The Depository Trust & Clearing Corporation (DTCC) reports as many as $6 billion in failures to complete trades per day.

Short selling consists of selling stock Sellers neither own nor have arranged to borrow. This is done with the intent to manipulate the stock price of targeted companies downward. These naked short sellers profit by repurchasing the stock following the downturn. These abusive short-sellers more often than not never deliver shares they are selling, but instead, postpone trade closures indefinitely.

Many financial experts believe that continued abusive short-selling practices will undermine the capital system. These practices may have contributed in substantial part to the massive frauds featured in recent financial headlines involving. The SEC’s Regulation SHO, was intended to redress these abuses, but so far has been largely ineffective.

http://biz.yahoo.com/bw/071220/20071220005280.html?.v=1