KAT Exploration Inc (KATX)

[gump90]

Let me attempt once again to explain this ' naked shorting ' MYTH. Almost ALL of the shares of any Company that are in the system at any time and in the form of share certificates sit at the central DEPOSITORY like the BANK for the game. All that you have if you own any particular stock is an account CREDIT from your broker. It's only the CREDITS that trade. The MM s run the game and can access the DEPOSITORY or certificate bank. The head MM in any stock doesn't keep any physical shares in his safe every day. If he sees undue upward pressure on that stock he will fill the orders - creating what you say are ' I O U ' shares. The client is credited with the shares. The M M owes THE BANK - which he partly owns or controls anyhow. He is only temporarily short - to the bank - and must settle that trade within 3 days more or less. Yes the MM s collude. NEVER is any new stock created - as some here think. Re the Record Date for the spin off ---- It is the account CREDITS that will get the BVIG shares and all the books will balance - like they should.