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Specalculator1

06/26/10 4:14 AM

#138000 RE: DrHarleyboy #137999

correction

Unless you know what you are looking at, you shouldn't draw "ANY" (period) conclusions

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solarflux2

06/26/10 5:14 AM

#138001 RE: DrHarleyboy #137999

Lol, again your appealing to us via someone else's posted opinion.

I have to disagree with this part:

Stock is never delivered the same day you sell it. That would not be possible



I think quite a number of trades are basically "settled" within the same day. If the funds are processed electronically, and the certificate is held electronically, and the seller actually holds the certificate, there's no reason to delay this type of transaction.

There is a standard three day window in which the trade is supposed to be settled (hence why with most brokerage firms you have to wait three days for the transaction to "settle" before you can sell the security.) Typically if the security isn't delivered within the three day period, we have a "failure to deliver," which sometimes (not always) is indicative of naked-short selling.

The truth is I don't know, you don't know, and most likely no one besides the buyer/sellers of these transactions knows why/how these shares are being shorted. We can only guess and speculate.

From the SEC website.

Short selling is used for many purposes, including to profit from an expected downward price movement, to provide liquidity in response to unanticipated buyer demand, or to hedge the risk of a long position in the same security or a related security.



Lots of good information about settlement periods and shorting from the SEC's website.

http://www.sec.gov/investor/pubs/tplus3.htm
http://www.sec.gov/foia/docs/failsdata.htm
http://www.sec.gov/spotlight/keyregshoissues.htm

IMO the SEC is the final word on this, not some thing some guy said on a message board.
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solarflux2

06/26/10 5:23 AM

#138003 RE: DrHarleyboy #137999

Also brother, if the following two statements were both true:

* Until a security is delivered, it is considered to be technically short.

* Stock is never delivered the same day you sell it. That would not be possible.

Then technically ALL THE VOLUME of any publicly traded stock on ANY GIVEN DAY would be listed as short. As we all know, this simply is not the case.

At least one of these statements is false.