Replies to post #88817 on Eagle Worldwide Inc.(fka ELWD)

[Shamantiks]

Senator Bennet does a darn good job of communicating - for a politician.

"But I have discovered something that appears to be a way around the SEC rules. Here is the transaction: Broker A shorts 1,000 shares. At the end of 13 days, which is the period he has to produce the shares, he has been unable to find any--probably hasn't even looked--but he has this requirement under the SEC rule to produce 1,000 shares. So he goes to broker B and says quietly: Sell me a thousand shares. Broker B says: I don't have any. Broker A says: It doesn't matter; sell me a thousand shares so I can cover. Broker B: All right. I will sell you a thousand shares so you can cover and there will be no passage of money; this is a deal between the two of us--a rollover. At the end of 13 days, broker B has to deliver a thousand shares, so broker A sells the same 1,000 phantom shares back to broker B, and they ping-pong these back and forth for as long as they want.

So you can have a situation where people are selling shares that don't exist, taking commissions on the sale, and the profits of the sale, and never, ever having to produce the shares."

[Eli's Gone]

Very familiar...I'm not disputing the NSS in general...in fact, my sig contains a line from his speech on the Senate floor...

I just think ya might not want to reference that other stock...someone else obviously feels the same way, as they deleted my post...

GLTU