e.Digital Corporation (fka EDIG)

[HotrodHans]

JUST GREAT, WE DON'T HAVE NAKED SHORTING RESOLVED YET, NOW IT'S

"INTER-POSITIONING"


The traders traded ahead, by buying or selling stock for their firms' accounts, at prices that would be better than the public would get, Mr. Kelley said. He added that they also engaged in what is termed inter-positioning, in which the specialists buy the stock at one price and then turn around and sell it at a profit to another client, instead of executing a direct sale between interested parties, as required by exchange and federal securities rules. "The harm to investors by each of these specialists trading ahead ranged from some $400,000 to $5 million, for a total of nearly $20 million," Mr. Kelley said.</B>