Replies to post #163112 on CMKM Diamonds Inc (fka CMKX)

[janice shell]

Huh?

I think the company is very comfortable right now and it's the S E C that is sweating.

According to your new hero Frizzell, "the SEC has the upper hand".

[Mark_Leh]

Once again, this is not how it works. Or at least it's not how it works in the U.S. (I don't consider myself an expert on Canadian rules)

I'm saying that more divvies will be requisitioned than what are to be distributed.

This has nothing to do with WHAT THE COMPANY SAYS IS THE DIVIDEND RATIO. In the U.S. for ALL COMPANIES this is the way it works: the dividend ratio is calculated on the shares outstanding. When a dividend is issued, the dividend is subtracted from a shorter's account and credited to the account from whom the shorter borrowed the stock. For stock which is shorted (naked or located--it makes no difference) the short is assigned a borrow by the clearing firm. For a situation where there is a fail, the situation is in limbo, but the number of fails in the U.S. is very small in relation to the shares outstanding. A failed dividend will force a borrow or buy-in shortly; this is a fact well-known to microcap companies, and it is the reason why they issue valueless dividends if they think there are significant fails in the underlying equity.

For whatever it's worth, this is the latest of many posts from you which are incorrect on U.S. trading rules and practice. Posts #145944 and #149753 come to mind immediately. Think about how you would feel if I repeatedly posted incorrect information about mining practices and basic chemistry. That's what this is starting to feel like. You are a very sharp guy and I have learned a lot from you about mining, but you are undermining yourself by continuing to post inaccuracies about trading.