Mike The Pike Productions Inc (MIKP)

[lbdave]

Some aspects are important to understand related to shorting, but I honestly wouldn't waste a lot of time trying to understand all aspects of it when dealing in OTC issues. The corrutpion runs rampant down here, and it's unfortunate that is usually perpetrated by management or insiders. Most of these companies aren't registered with the SEC, therefore the sale of unregistered shares are a means of funding for these companies. just one example here, accredited investors will buy discounted shares from the company at a large discount to market value. There are no time restrictions for holding per se, on these shares. They are supposed to hold them for investment purposes, but no real time restriction. Many times these funders will short against the paper prior to the TA removing any ledgends which may restrict them from being free trading, so once the ledgends are removed they will simply deposit the certs to clear their position. Way too much corruption to try to figure out lol.