InvestorsHub Logo

Toxic Avenger

01/28/12 12:35 PM

#161360 RE: Johnik #161357

It's been a while, so let me take everyone through it again.

This is a logic exercise based on "Reductio ad absurdum", or as Wikipedia describes it "is a form of argument in which a proposition is disproven by following its implications logically to an absurd consequence."

If JBI were being naked shorted:
- MMs (or whomever was doing it) would have the ability to create an unlimited number of counterfeit shares without either them or the counterfeits being detected.
- Since profit for the NSS is 100%, share value would continually decline as NSS wouldn't care what the price was, as long as they could get buyers.
- Counterfeit shares would be resold, wiping out the trail of where they were counterfeited.
- This would be done on virtually every stock possible, wiping out the value of every stock and the markets themselves.