Janice,
At work so can't post much beyond this, but there are many groups, such as firms that trade through foreign exchanges, off shore firms, specialists, options players, who are not NASD members, and therefore don't have to comply with the NASD rules that require members to assure delivery of stock by the settlement date.
For example, if you open a brokerage account at an off shore firm, they are allowed to keep open "fail to deliver" orders on their books. A US short selling group trading through these firms literally can get away without delivering their shares.
Shorts were able to get away with this practice because only those firms that were NASD members were required to comply with delivery rules. They most easily manipulate the OTC Market and Pinksheet stocks. There is no greater target than CMKX for cellar boxing using these illegal trading methods.
GLKCE continues to be a glaring example of this. They were obviously trading shares beyond the stated float for weeks on end. GLKCE is still a play as long as management holds firm and uses their situation as an example of possible illegal trading practices. It seems GLKCE management will hold this share structure in place until after the Dateline piece on April 10th, and possibly beyond depending on any follow up to their story.
I bet that will be one of Dateline's highest rated shows ever, and could be a watershed segment that will lead to real change.
Does fair trading disappoint you?
gtg
Bo
