RCC Holdings Corp fka RCCH

[frogdreaming]

I love all the various and sundry gimmicks that are used by different folks to build their belief structures on. This is a good one not normally trotted out.

A squeeze is forced only when real shares need to be bought and delivered, and not when IOU's are placed in street name accounts.

The premise here is that it is the broker and not the MMs that are the perpetrators of the fabled 'naked short' conspiracy. The broker merely takes the money for the requested transaction, puts an IOU in the account and doesn't buy any shares at all. Of course this begs the question of how the transaction appears on the trading history for the day which is generated by the MMs. It would also not show up in the daily volume log since no shares were ever transacted from the trading exchange. Unfortunately for the theory anyone can look at the trading history for the day and see their transaction occur at the specific time and number of shares, but those details are inconsequential to the belief structure.

Additionally since most 'theorists' point to the huge volume numbers as their prime evidence of a 'naked short' occurrence, how does one reconcile an imaginary short trade that doesn't create a volume entry?

Enquiring minds would like to know. Anybody?