Stock Ethics and Philosophy 101

[BigBake1]

Here is the problem with the supposed idea of a stock basher on the OTC, where does the money come from? How does one pay someone to bash a security? Where does the flow of money start and end?

Some have theorized that "shorting" can be a source to pay and fund the activity. But anyone that has ever researched the activity of shorting on the OTC will find it is not even a profitable transaction due to Reg T requirements making it cost prohibitive.

There isn't a way to hedge a position based upon the activity that is hoped to be caused by bashing the security. Further making it difficult is that no OTCBB or OTC market quoted security is eligible marginable in the first place.

Could it happen on exchanges? Certainly, because there are a multitude of ways the parties could benefit from the action. Not only are the securities easier to short and cost far less to do so but there are "Options" to use also, a simple PUT option can be used. Colluding entities can actually work together in a manner so that all have incentive to act, because they all have ways to pocket money on their own. There is no doubt some "talking heads" play both sides of the market and have influenced certain securities with their statements. But those people have access to a national audience where such influence has far greater strength. Most have disclaimers about their opinions offered.

Here in the OTC it is strictly pump related because that is the only side where benefit can be taken by everyone involved.