Replies to post #105010 on Cascadia Investments (CDIV)

[Maico501]

Those air shares you have, have the same value because the MM have to honor them by law.

[Craig Baker]

legally market makers can't sell you anything other than real shares of the company. So if the company has 10 shares and the market maker sells you 15 shares, he sold you 10 real shares and 5 shares that the company did not issue to them, so 5 of those shares were sold to you naked short. So, even though the company only has 10 shares for sale but the market maker still sold you 15, now the market maker is short 5 shares and now he will have to pursuade you to sell him 5 shares back to cover his short or he will have to buy them back from you at whatever price you dictate. ;-) Hope this helps.

They are selling shares that don't exist but reguardless, if you purchased shares and you own them under your name, they are real shares........ It's the market maker that created those shares and it's the market maker that has just sold you something he shouldn't have and that will have to be bought back eventually........... ;-)

also, he may have borrowed those additional 5 shares from someone else but still, he needs those 5 shares back to repay who he borrowed them from. Most of the time, these crooks borrow shares from brokers who have alot of restricted stock and they do this hoping that those restricted shares get free'd up and hit the market. If those shares never come into the market, then they gambled and lost.