Replies to post #19149 on Flexpower Inc. (FLXP)

[jas0420]

It is when shares of a stock are sold/shorted that don't really exist... Basically counterfeiting the stock. The effect of more shares on the market than actually exist equates to a float much larger than the company actually released. CHNW has indicated that as many as 1 BILLION of these counterfeit shares exist in their stock alone. Hence the cusip & name change in an effort to force the shorts to cover.

For the details of how it actually happens, there is a verrrrry informative presentation by the CEO of Overstock.com (kind of the poster boy for naked shorting now) here: http://www.businessjive.com/nss/darkside.html

It takes about an hour to get through, but it is very eye opening and done in a manner that anyone can follow.

Mind blowing to think that it is as rampant as many claim it to be, but really not all that hard of a picture to paint... Greed and money!!

[MrSparex]

Yes.
JDoris,
When I try to explain shorting to friends and family...
I say: "Imagine your a hula hoop dealer and you believe the price of hula hoops are going to go down over the next year.
You have a deal with your supplier that you can take hula hoops and either return them or pay for them later. So you buy 1,000 hula hoops for $1 each and immediately sell them for $1 each. Then the price drops to fifty cents. You go buy 1,000 of them (for fifty cents each) and return them to your supplier. You pocket $500 profit."
Shorting is legal but "naked" shorting is not.
Naked shorting is when someone sells shares but have made no arrangements to "borrow" them. Thus giving them an endless supply which beats the price down down down! Short sellers as a whole have stolen BILLIONS from investors and the SEC either doesn't care, can't keep up with it or ARE DOING IT THEMSELVES!
They almost always win in the long term.
(I love membermarks if this helped anyone)

[universaltrader]

try reading this
http://www.americanmicrocaps.com/featuredcolumn2.htm