International Power Group Ltd (IPWG)

[dkspartan1]

MM's covering shorts



In providing a liquid market, the MM's have to step in to keep an orderly flow of transactions. Instead of letting an order sit there until there's a matching order in que, they will take a proactive measure and complete the transaction with shares from their inventory or borrow the shares. The daily FINRA SHO report shows those tranactions as "shorts". They do it to get what they are owed, the bid/ask spread. Most of them are covered by the end of the day, if not, then within the T3 period. If they're not covered within the T3 period, they become "naked shorts".