Shares that are shorted and placed in an investors account as a marker are worthless in real value and it has nothing to do with the company being legit or not.
I'm not even talking about high risk stocks either, even though I consider all stocks high risk these days. It could be Google for that matter.
I tell you what Janice. You send me $900 and I will give you a piece of paper, not a cert, telling you that you have 100 shares of Ford Motor Company.
How good would you feel about that transaction?
That's the way the investor would feel if he knew everytime he paid money for a real share of a company and found out he got a worthless share that was shorted to him.
IMO The markets have no ethical standard.
To much money to be had and everybody wants a piece of the pie.
May the most unethical guy that can get away with the most without having his hand slapped by the SEC win.
That's what it's all about.
Shuffle billions of dollars around and see who can skim the most off the top with out getting in trouble.
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