Replies to post #2576 on NSS ~ Counterfeiting Stock ~ MM Games Played

[janice shell]

There isn't.

It did happen, though, with BCIT. The company was hijacked, and Mario Pino issued some stock that got into the market. The CEO was aware of what had happened by early May 2005, but he didn't report it to the authorities till the beginning of August.

Meanwhile, thanks to Pino's ridiculous PRs, buying interest in the stock increased. It suddenly spiked enormously in early August, and the MMs sold short into the demand. The SEC dragged its feet, and failed to suspend trading for about two weeks. By that time, of course, the problem was worse...

But the stock wasn't shorted because someone thought it was a good short play.