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quellen

05/19/05 6:26 PM

#1512 RE: rookinvestor #1510

I believe it is legal for the MMs to do it, as long as they are doing it to maintain an "orderly" market:

http://www.sec.gov/spotlight/keyregshoissues.htm

http://www.stockpatrol.com/article/key/regshofaq

The OTCBB differs from other exchanges in that the MMs can have large short or long positions without having to tell anyone about it.

Personally, I still don't believe that naked shorting goes on much. If you're the casino and you always get the house's cut then you don't need to rig the tables.