There’s a racket known as “naked shorting” taking place in some of the North American Stock Markets.
To simplify the concept of “naked shorting” of shares, consider this:
Imagine you’ve got your home for sale in a hot housing market, and your real estate broker lines up 5 buyers. He sells the home to all five but keeps the money from the other four. How would you feel if you were one of the four people who paid the price but didn’t get the deed to the home, weren’t entitled to live in it, but for a commission you’re offered a chance to sell it to someone else, even though it really doesn’t exist … and now in a marketplace with 4 extra “homes” for sale?
The only difference between the above and “naked shorting” is that the four home buyers soon realize they’ve been defrauded and alert the regulators. The market investor never realizes he’s been defrauded because he has faith in the system and therefore doesn’t demand his broker show him the registered share certificates made out in his name.
Don’t be content with a monthly statement showing you own shares when in reality they don’t exist. Pay for and ask to be shown the registered paper certificates, and if you’re a long term investor, ask for delivery of some of them to be sure they’re not borrowed by others to manipulate the share price.
More and more people believe the proceeds of these fraudulent sales are being used to fund terrorism.
For more on this, visit Website www.investigatethesec.com
AI
