short selling is shares borrowed from someones account that can be sold as an IOU but not issued. Those borrowed shares have to be returned to the real owners account. The Short Seller has so many days to cover the shares they borrowed to cover the issued short sell shares.
Naked shorting is when the investor does not even attempt to borrow the shares from an account (normally when borrowing shares the borrow pays a fee to use those shares). When the borrow decides they don't want to pay the fee to borrow the shares they will instead Naked Short the shares.
Naked share sellers and Short seller have one goal and that is to try and keep the price down or cause PCFG shares to totally fail. Leaving the Short Seller and Naked short seller off the hook on having to cover those shares.
The reason I am so well versed in this is because I was one of 40,000 share holders of another Stock that the Naked Short Sellers and the Short sellers were able to drive that stock and business into the dirt. They walked away with $7,000 of my invested money. The good news was that the SEC and FINRA got all that information and the crooks had an option to pay a hefty amount of money for their illegal actions or be prosecuted and sent to prison.
Now the money collected sets in limbo and has not been returned to the share holders. We hold out hope someday the money will be returned but I have written it off as a learning experience.
So think what you want about short selling and naked short selling I just hope PCFG does recover from this and makes the short sellers (to include Naked shorts) cover and pay a hefty price to cover those shares.
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