You're the one that brought up your buddy Avi's reference to shorting.
"Not illegal. In fact, most of HMBL's contract specifically said that selling shares before obtaining certificates was not "shorting" and not illegal."
I never said shorting against the box (which is exactly what it is as you are shorting against a security you own) was illegal.
And while I am not going to go and look for it now...I don't believe the agreements ever said it wasn't shorting because it is...it basically said that they would be allowed to sell short against the expected issuance or something, I would have to check.
And in most cases they are a naked shorting with the attendant FTD because the regs allow them up to 35 days to cover without a forced buyin.
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