InvestorsHub Logo
Boards
News
Market Data
Markets
Discover
Discover
Subscribe Login/Register
S&P 500
5,567.19
(
1.06%
)
US TECH 100
19,828.00
(
0.95%
)
Dow Jones
39,375.87
(
0.17%
)
Brent Oil
86.78
(
0.00%
)
Bitcoin
56,722.37
(
0.13%
)
Post# of 35926
Next 10
Reply Private New
Public Reply Private Reply New Post
Keep Last Read
Replies (2) Keep Next 10 Report Keyboard Shortcuts
Replies (2) Next 10 Prev Next

g-invest

Send PM Follow Ignore
Followers 1
Posts 107
Boards Moderated 0
Alias Born 09/13/2005

g-invest

Re: speedmasters post# 3206

Monday, 02/27/2006 11:55:32 AM

Monday, February 27, 2006 11:55:32 AM

Post# of 35926
No, not short restricted shares. Toxic financing works by the CEO promising X number of shares to an investment firm for the lowest closing price of three days or something along those lines.

The financier then short sells the stock so it drops over 50% in value or whatever, and gets to "buy" the shares from the CEO who takes tresury stock and converts it to real stock. The short seller then transfers these real shares to all the suckers that bought it on the way down.

My question is: The articles went into effect Friday, why haven't we seen the toxic financing (shorting) yet?

Toxic Financing in Penny Stocks:
http://yorn.wordpress.com/2006/03/08/toxic-financing-in-penny-stocks/

Public Reply Private Reply New Post
Keep Last Read
Replies (2) Keep Last Read Next 10 Report Keyboard Shortcuts
Replies (2) Next 10 Prev Next

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.

Sign Up