RCC Holdings Corp fka RCCH

[funmaxus]

From: Management Accounting Quarterly, Market Makers' Methods of Stock Manipulation.
How Trading Manipulation Can Adversely Affect A Firm's Equities And What Finance Managers
Can Do About It.

By, A.J.C. Ataldo, Phd, CMA, CPA, and Larry N. Killough, Phd, CPA.


http://74.125.47.132/search?q=cache:HSNDjmg5R94J:www.imanet.org/pdf/1832.pdf+market+maker+manipulation+examples&hl=en&ct=clnk&cd=1&gl=us


Another type of market manipulation is the naked short sale. Firms with a declining PPS are targeted for naked short selling. This practice is very damaging to the publicly traded firm and may be popular among the off-shore brokerage firms where U.S. securities laws are less easily enforced or do not apply. It is similar to the counterfeiting of currencies. In a naked short sale of stock,short positions are not declared or disclosed, shares are not borrowed to cover the short sale, and the stock is never delivered to the purchaser. The result is dilutive in that it results in an artificial, unauthorized, and illegal increase in the number of shares issued and outstanding and in a manipulated decline in the PPS of the firm’s stock. The broker dealer merely floods the market with cheap, nonexistent shares of your firm’s stock. The seller of these nonexistent shares keeps the proceeds.For example, on August 13, 2002, GeneMax Corp.announced concerns over naked shorting and took measures to ensure that trading in their shares occurred in a“fair and appropriate manner.”Records indicated that as of August 2, 2002, shareholders of record held 400,820 shares, where only 265,654 were available, free-trading shares, leaving the Depository Trust Corporation and Canadian Depository for Securities Limited with a net deficiency of more than 168,000 shares.On August 16, 2002, a two-year federal sting led to the indictment of 58 stock brokers and corporate executives. The unsealed indictment alleged stock manipulation of JagNotes.com, Softsquad Software Ltd., and CMe Run Corp. On January 23, 2003, Jag Media Holdings, Inc., the parent company of JagNotes.com, announced that it would allow “custody only” trading of its stock to protect stockholders against naked shortselling. Under custody-only trading, a company’s stock is issued only in the name of beneficial owners in physical certificate form.