Replies to post #208279 on CMKM Diamonds Inc. (fka CMKX)

[Investorman]

Because there will always be a small amount of things that don't get done within a certain time limit. No different than any other business. Why not call your bank today to wire money to France? Ooops, a holiday you say? Kind of shot that example down.

No one is having a hissy fit. It is just your imagination.

[gump90]

jimmy .. we know the following ..

Short selling .. legal or otherwise .. INCREASES THE FLOAT !! How simple is that ? And increasing the float = dilution = a lowering of price governed by the law of supply and demand. This is all fundamentally simple stuff to understand. However the short selling is not properly policed in my opinion. But yes .. short selling does have its place. However in all cases it should be controlled by the seller's ability to locate shares that can be borrowed. I think a percent limit should be applied to the shares that can be made available in the stock borrow program. In Canada it is called the 'Loan Post'. But to allow criminals to just sell sell sell is completely wrong. And I believe that it happens far too often.

[janice shell]

Then answer it simply investo..WHY cant they cover the trade in five days??

Plenty of reasons have been adduced by those who actually know how this stuff works. Here's one: if a stock is suspended by the SEC, no trades, long or short, can be settled for two weeks. Scarcely the fault of the brokerages.

I haven't bothered to read the actual legislation, but if they're trying to prevent MMs from going short (or long) to provide liquidity, then naturally everyone's pissed off, and for good reason. If that's the case, then either the bill will be quietly altered, or I suspect the world of finance really will take Utah off its Christmas card list.