After recent news of a merger at GAGI.PK, it appears that an irresponsible trader has taken advantage of the latest trading activity and began to short GAGI stock causing down ward pressure on the stocks price. Guardian Angel Group may have been a victim of a “malice, illegal stock market manipulation scheme” to distort its stock.
This manipulative activity could have caused tremendous damage to share holders. MAL has sent an e-mail to the board of directors of GAGI.PK and made them aware that shares of OTC.PK: GAGI have been sold short in recent trading days.
In naked short-selling, the trader sells the shares without properly borrowing the stock. When the stock isn’t properly borrowed, the buyer at the other end of that short-sale doesn’t get delivery of the shares within the mandated three-day window. fast working market makers are allowed to sell without borrowing to keep orderly markets.
But naked short-selling as a strategy in and of itself is illegal. However tempting, this reckless behavior in a micro-cap -stock can be devastating to share holders.
We at MAL are pleased that FNRA has developed systems that generate early detection and reporting of such practices. We are pleased to inform our viewers that this issue has been identified and we anticipate a remedy is forth coming soon.
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