AI
Friday, June 04, 2010 12:06:55 PM
I have seen several people reference how hard it is to get shares to short. Why does someone even need to find shares to short? And don't give me that "naked shorting is illegal crap"
Seriously, it would seem if someone knows the right person, naked shorting would be easily doable.
And on top of that, one can buy CDS on a company at vlues several times a company's market cap, creating a different downward pressure on a company. While maybe JBII is too smalll for such antics, my only point is this notion that shares must be borrowed to create downward pressure seems a bit naive. But I could be wrong.
Seriously, it would seem if someone knows the right person, naked shorting would be easily doable.
And on top of that, one can buy CDS on a company at vlues several times a company's market cap, creating a different downward pressure on a company. While maybe JBII is too smalll for such antics, my only point is this notion that shares must be borrowed to create downward pressure seems a bit naive. But I could be wrong.
