CMKM Diamonds Inc. (fka CMKX)

[jon_e_og]

<Does that cancel out the short position in the MM's books, even though a real share never changed hands either going out or coming back in?>

1) broker/dealer sells short...assigns a cusip to an imaginary cert, brokerage account shows a credit for the shares, short seller receives money

2)broker/dealer covers short...brokerage account debits the shares(real or fake), short receives the bogus share back, shares are destroyed, books net out

3)DTC keeps their eyes closed and their hands out...