"How does a Naked Short Hedge fund cover a restricted dividend?
That does seem to be the elephant in the room"
Not sure if this is what you are meaning, Justerx, but I have often thought this by those who claim heavy 'naked' shorting, which is said to extend way beyond the 'pink sheets' - how is it (the manipulation, the wrong doing)not uncovered (or, literally, covered)at dividend time - especially large 'special divdend'time if many people are holding more shares than those issued by the company?
Great West Gold (GWGO) has just paid out a 25% dividend in shares of a number (five)of its gold companies which are now to float on their own. Yet, GWGO is on record (see internet)as being so plagued by 'naked' shorts it is taking action against them under new rulings.
This company has been trading over a billion shares each day for the last two days. It is also to pay out more shares to its shareholders next month. Remember it has ALREADY paid out one lot, and the shareholders have received them (as I noted from RB site)
So, again, what happens to the millions of shareholders holding those 'created out of thin air' (virtual reality) shares? The company will/can only pay out to those on their books from shares issued legally.
'Enlighten' me,anyone, don't take my 'nom-de-plume', too literally - it's more of a 'wish to be'.
