NO QUARTER FOR CORRUPTION (Focussing on The Fed./FRBS)

[Telephonics]

wHAT IS NAKED SHORTING??



Naked short selling refers to a stock transaction in which the seller agrees to sell shares of stock that he or she neither owns nor has borrowed in time to make delivery to the buyer within the standard three-day settlement period. When done in large volumes, this sales tactic can be used to manipulate a stock's share value while allowing the seller to profit. The SEC adopted Regulation SHO in 2004 to update short-sale regulation and, in part, to address problems associated with abusive naked short selling transactions. Industry compliance with Reg SHO began in January and in May the SEC launched a pilot program to determine the effectiveness of the regulation.

In spite of this regulation a good number of stocks have been on the list for over 100 days or more.