Replies to post #2385 on Fusion Pharm, Inc. (FSPM)

[Muz489]

Yeah they'll still be waiting for earnings.

[blackcat]

Just as an FYI, that is not necessarily true.

A recent headline exposed illegal naked shorting and immoral practices at Goldman Sachs (NYSE: GS) and Bank of America (NYSE: BAC) (Goldman, Merrill E-Mails Show Naked Shorting, Filing Says?).

Many retail investors think by placing a Good Till Canceled order (GTC) they can prevent their shares from being lent. A quick survey of some brokers indicated this to be more of a myth than reality. While some brokers may act as such, most don't recognize an open order as prohibitive of lending shares.

http://beta.fool.com/beatlesforever/2012/06/04/shortlending/5274/

[TraderGash]

Brad, I think you are seriously confused about what a MM can and can not do. Their role is to add liquidity to the market. They do not have to borrow shares to establish a short position, because they are Market Makers! I suggest you do a bit more research on this subject.
If a retail trader wants to establish a short position, the broker must find a source of shares to borrow. At the moment, Interactive Brokers is showing that there are shares of FSPM available to borrow.
I don't believe that placing a GTC sell order on your position will affect the ability of a broker to borrow your shares. It certainly won't affect the ability of a MM to establish a short position.