Zenex International Inc. (ZENX)

[AngelHillCorp]

MM's exempt from SHO Naked Short & Short Up-Tick Reg. ...

http://en.wikipedia.org/wiki/Shorting

A naked short sale is when Short selling takes place on a security, but the seller does not borrow or arrange to borrow the securities in time for Settlement (finance) (in the major United States capital markets, settlement typically takes place 3 days after the transaction). As a result, the seller fails to deliver securities to the buyer when delivery is due; this is known in the securities industry as a "failure to deliver".

Naked short selling can threaten the stability of stock prices because stocks can be sold without having to first aquire them from existing owners.

In the United States, the Securities and Exchange Commission enacted Regulation SHO to prohibit Naked Short Selling. Howver, Regulation SHO makes an exception for market makers engaged in "bona fide market making". Market makers do not have to locate stock before selling short, because under certain circumstances they need to be able to provide liquidity. Regulation SHO also put in place a warning system against the risk of stock price instability by publicly identifying securities where short positions composed more than 10,000 shares and more than 0.5% of the Total Shares Outstanding for 5 consecutive settlement days or more.

Even after the enactment of Regulation SHO, naked short sales have again come under scrutiny due to the large number of stocks which have triggered the warning system.