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GorillaGorilla

09/18/09 6:45 AM

#3686 RE: drucwolf #3685

The SEC says failure to deliver is not necessarily short selling - 1% of shares each day have failiure to deliver... but it sure looks interesting that the 1% keep hitting CDBT.

I belive it is naked shorting (more knowledgable feel free to butt in)... in essence you are selling shares without giving ownership to the buying party - you are creating more supply and we know what happens to a stock price with lots of supply.

http://en.wikipedia.org/wiki/Naked_short_selling

Has a sentence of failure to deliver... Saw a video about it once on web that was very good.

My question is can it go on forever? I am betting not. Supressing price means that the company can't raise captial at a proper rate but CDBT has vaults full of cash.

rich