Clear misinformation.
Some FTD's do result from Long sales, but in order to get on the Threshold list the T+3 rule has been obliterated and a pattern has developed.
Let me draw you a "stick picture" so that it will be easier for your little brain AH.
Crook A sells short a share of XYZ he does not own or borrow.
Unsuspecting Investor B places buy order for XYZ share.
The DTTC delivers B an IOU, aka Counterfeit share.
B's broker D loans F that share who shorts the share to H
The DTTC issues ANOTHER IOU.
H thinks, he too, has bought a legitmate share.
Crook A NEVER delivers and takes his money home.
WHO OWNS A SHARE???
NO ONE!!! But at least two unsuspecting investors believe they do, but XYZ has not authorized the shares.
UNAUTHORIZED SHARES = COUNTERFEIT SHARES
You can continue this on and on and on.
This practice takes place EVERY SINGLE TRADING DAY.
The DTTC knows it and makes money off of EVERY transaction.
The NYSE makes money because they own the DTTC, but they could stop the illegal activity INSTANTLY, if they wanted to, but they are making HUNDREDS OF MILLIONS OF DOLLARS
The SEC knows this is happening.
The Congress knows this is happening.
The White House knows this is happening.
All the while, XYZ suffers dilution and stock price drop, stockholders are being robbed of stock value, denied voting rights, and all to often XYZ goes bankrupt because their stockprice has fallen to levels where capital can no longer be raised for operating expenses.
I suggest you research the Stock Borrow Program before you put your other foot in your mouth.
News 
Market Data 
Discover 
