Colorado,
I respectfully disagree with your opinion about naked shorting being a problem and our new SEC Chairperson, Mary Schapiro disagrees with you also. I will agree that it is used too often to explain management's failures but I don't think that is the case here.
http://dealbook.blogs.nytimes.com/2009/05/05/sec-chair-says-short-selling-rules-a-priority/
"The head of the Securities and Exchange Commission said Tuesday she was making the issue of new rules restricting short-selling a priority as the agency heard from an array of interests about ways to limit trades that bet against a stock, The Associated Press reports."
http://ezinearticles.com/?Naked-Short-Selling-is-Like-Legalized-Theft&id=1178192
"According to the National Coalition Against Naked Short Selling (NCANSS), "Between 700 Million and 1.5 Billion undelivered equity securities are outstanding on any given day in the U.S. equities markets, not including "ex-clearing" failures."
The bottom line for penny stock traders is that naked short selling destroys your investment's value. Using NSS, some traders are allowed to make a profit off of your investment, without ever buying the shares to begin with. I should mention that this problem is not isolated to the penny market, as there are numerous examples of NASDAQ companies claiming NSS against their companies. But in the penny stock market it is virtually impossible to prove NSS occurs, as accurate short position data is hard to find in over-the-counter trading."
F18
AI
Market Data 
Markets 
