DD Support Board and Research Team

[janice shell]

How does that help or promote the capital markets?....I know...that is not what the court cares about....

Sometimes the courts do care about what's good for our capital markets. Back in 1995, an appellate panel ruled in favor of a naked short seller in the landmark Scattered case, holding that what the short seller did promoted an efficient market for the stock.

http://scholar.google.com/scholar_case?q=Sullivan+%26+Long+v.+Scattered+Corp&hl=en&as_sdt=2,39&as_vis=1&case=8171030952991497392&scilh=0

And that ruling is why naked shorting isn't actually illegal, even now.