Avalon Technology Grp (fka AVLN)

[enlightened1]

You have not really answered my question. I understand the argument against 'naked' short selling.

I can understand it working on companies that provide no return to their shareholders. But how do they get round those companies that decide to pay out something to their shareholders - cash or shares?

You have a traded company. You issue a billion shares. Therefore there are shareholders registered on your books to cover that billion shares.

Now naked shorts start floating (dumping) on the market that add up to two billion. That extra billion cannot be on your register without you being aware.

You are issuing as a special dividend $1 per share for every share held. That would have been budgeted as costing one billion dollars. What happens to those extra one billion holding shares?

What am I missing? Obviously something, but what?