NSS ~ Counterfeiting Stock ~ MM Games Played

[dia duit]

“It has always puzzled me that the SEC didn’t take effective action to eliminate naked shorting and the fails-to- deliver associated with it,” Pitt, who chaired the commission from August 2001 to February 2003

He is now the CEO of Kalorama Partners LLC, a Washington-based consulting firm. In August, he and some partners started RegSHO.com, a Web-based service that locates stock to help sellers comply with short-selling rules.

What always puzzles me is Pitt did nothing about the issue when he had the ability to do something. Seems like it only became an issue when he could benefit from it.

SEC regulations state that brokers who haven’t received stock 13 days after purchase can execute a so-called buy-in.

That raises another issue. Why do buy-ins occur after market and when the share price is much higher?


When coupled with the propagation of rumors about the targeted company, selling shares without borrowing “can allow manipulators to force prices down far lower than would be possible in legitimate short-selling conditions,” he said in the article.

On the flip side of that, when false rumors or legitimate news cause the share price to soar on heavily shorted stocks it is the retail short sellers who borrow shares that have a disadvantage . Naked short sellers can average up, but short sellers who can't locate a borrow are force to either cover at a loss, or wait it out hoping they can eventually find a borrow to average up on.

But since RegSHO has been implemented the playing field has been level. Retailers are denied shorting these stocks, no matter if they are naked or want to borrow.