Replies to post #6895 on Diversified Oil and Gas Holdings (DVFI)

[BonelessCat]

Your BIGN shares can't be loaned for short sales, period. Scottrade, Ameritrade, E-Trade, Noble Trade, etc. do not loan your pink/OTC shares for shorting. Any short sale in pinks is a naked short. When MMs fill a buy, they must cover with bonified shares. They may make the sale without immediate shares, but then they have an open position. They have 5 trading days to fill the open sale or Reg SHO kicks in. If MMs are filling buys without the benefit of matching shares and without an intent to cover, then they are naked shorting.

Having a cash account will prevent those same brokers from loaning your NASDAQ, AMEX and NYNEX traded shares.

[Halada]

Nothing will happen. Its called naked shorting. No need to borrow shares in the US market to short a stock. The rules probably say you can't do that , but in a corrupt market anything goes. Welcome to the PINK world. you not only have to pick a good company you have to figure what the MM's are going to do with it. My answer to the problem is go extremely long and hope that the company doesn't go broke while the manipulators have there fun. BIGN should pull through unless something changes.
HAPPY TRADING

[shermann7]

All my shares are in Cash accounts, and that is correct. Shares on Cash Accounts cannot be shorted, at least legally.

Shermann