Good question how many phantom shares will come from off shore or how many are affecting the trading here now?
What are phantom shares you ask? Overstock.com had a battle with it. Over 9 million unauthorized shares were in the float. Talk about a bigger problem with trade than the Libor Rate manipulation/scandals that the top banks were found guilty of. If so many of these nasdaq and NYSE companies are affected with fantom share one can only imagine how rampant the wild wild west that OTC land is. The only reason they don't do anything about it is because number one they don't want to and number two if they did or at least disclosed the extent of the affected compaies (which I expect would be the majority of the market) it would remove investor confidence on the entire market and we would see a market crash unlike anything we have ever seen.
"Meet Patrick Byrne, the outspoken CEO of Overstock.com, an Internet retailer based in Salt Lake City that went public in May 2002.
For the past two years, Byrne has been complaining that naked shorting has driven down share prices in thousands of small public companies, including his own, by permitting the sale of stock that, in some cases, doesn't exist.
From January 2005 to January 2007, Overstock share prices dropped nearly 70 percent.
Overstock was on the list of failed deliveries that U.S. Exchanges released in January 2005. Along with Overstock were more than 240 other companies on NASDAQ's list, among them some familiar names - Trump Hotels and Casino Resorts, Global Crossing, Netflix, TASER and, U.S. Airways.
The New York Stock Exchange had nearly 60 companies on its list, including Delta Airlines, Martha Stewart Living Omnimedia, Krispy Kreme Doughnuts, and Winn-Dixie Stores.
And the problem is not going away. Since Reg SHO took effect, more than 4,500 companies have been affected by stock delivery failures severe enough to qualify them as threshold securities. That's roughly one in three companies traded on U.S. exchanges, the majority of them with small or very small market caps."
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