I love the MM manipulation and ole shorty posts - shareholders want to blame everyone but management.
Why in the world would any MM want to manipulate a sub-penny stock?
MMs are for providing liquidity to the market - nothing nefarious going on.
MMs do not "short" penny stocks. As part of making a market, they may have periodic short positions throughout a trading day if they fill buy orders for more shares than they have in inventory, but they also often have inventory when they fill sell orders. Having an inventory does not mean that they are going "long" any more than having a temporary net short position is "shorting." This kind of temporary short position is legal and necessary for efficient trading.
The FINRA daily short data does not show true short positions and that the Bi-Weekly report is the only reliable one. It also explains that when new shares are entering the market, they are reported as short until the stock is delivered.
The short data for all OTC stocks including those quoted on OTC Markets (fka Pink Sheets) is sent to FINRA twice a month by broker/dealers. FINRA compiles it and publishes a semi monthly report. These bi-weekly reports show the aggregate short position by all market makers as of that settlement date.
SHORTS data according to FINRA regarding their daily SHO list which seems to show 30-70% off all the volume in thousands of stocks as 'short sales'. FINRA explains the 2 factors which tend to inflate the short sale data beyond what is normally considered a short sale, i.e. a person or firm borrowing shares which are then sold.
1. All marketmaker sells to buyers for which the MM doesn't at that moment possess the stock would go onto the list. The shorts data is sent to SEC at time of execution, so during the course of a day, a MM may trade 20M shares of company xyz, of which 10M of those shares were initiated as short sales and the other 10M were buys to cover those shorts. Despite the fact that their net position at the end of the day is flat, the data would show 10M shares as having been short sales.
2. The other factor that could affect the daily short figure is very interesting. If a sale is being initiated by the holder of restricted 144 stock, even though the owner of those shares is technically a long, the sale is listed as a short sale because the actual certificates are not yet "clean" via the transfer agent.
FINRA states that in order to ascertain the true "open short" position one should look at the bi-monthly short report. It was also stated that any of the daily shorts which were not delivered within the prescribed time would definitely end up on the FTD list.
GRCU doesn't have any Failures To Deliver.
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