Replies to post #77451 on Pacific Gold Corp fka PCFG

[Star Gazer]

That 46% of the shares traded today were short sales...either by borrowing the shares from margin accounts or by the process of Naked Short Selling (NSS), which means that the Market Maker's are selling shares that they don't have and have no intention of finding to borrow. At some point they have to cover those sales by buying shares at a lower cost (to make money).

Hopefully PCFG is making buckets of cash right now and will issue a dividend which to my understanding will cause a Outstanding Share audit and force the NSS crooks to cover their short positions at any cost.

It is clear that this Jr. Gold Mining Sector has been and still is being blatently exploited by the MM's but it is starting to look like some of the worst offenders are starting to pull back from line and others are stepping in to keep the price low.

The best annaligy that I have heard is that that manulation that is currently occuring is like pulling back a slingshot... It may work for a while but when they can't hold it any longer...

KABOOOM !!!!!

[WhiteSahara]

Let's say you want to buy 100,000 shares of PCFG at .017 cents and the Market Maker your broker uses to buy and sell stocks lists shares of PCFG at that price on the Ask. However, he doesn't actually have 100,000 available at the price you placed to buy the shares, he has only 50,000. To do the sale at that price, he sells you 50K shares he has in inventory (or matching a buyers shares and a sellers shares) and 50K he doesn't. He creates 50K to sell to you to make the order or he "naked shorts" to make shares available.

The SEC in all their wisdom (TIC) has allowed the Market Makers and Specialists to sell shares they don't have to someone buying to keep the market fluid. They then have three days to buy those "imaginary" shares back to balance the books.
IMO it simply allows the MM's to cheat and manipulate price movement more easily than simply selling exactly what they have and then moving the price upward. It can and does stall and slow stock runs.