I agree that banning short selling of penny stocks would be a horrid idea. We already have the data to prove that this would be bad for investors.
Take a look at low-priced (price $2.50 per share) OTC and pink sheet stocks. Low priced stocks are more often involved in pump and dump scams. Why? Short sellers won't touch them.
The NYSE requires all its member firms to require a minimum $2.50 in cash to short sell each share of a stock. So if the stock is priced at $0.25, a short seller would need $10,000 in cash to short $1,000 in stock. This effectively prevents short selling of low-priced OTC stocks and abets the pump and dump scammers.
Gary shows just how stupid he really is.
You are going down dirtbags.
LOL, Arun. It's not Mr. Weiss enjoying the hospitality of the MCC, is it?
Arun,
You have become delusional and disoriented! Hey, that Nazi tirade from Altomare was just swell, eh? You hero. USMC Captain America!
Go home, Arun. Just go home!
-Steve
Pointless post.
Short selling is good.
Naked short selling is bad. It's fraud on the market, particularly because it supresses the value ofher investor's holdings.
Anyone who can't tell the difference shouldn't comment on the topic.
Chairman Cox:Illegal naked short selling is an especially serious threat to smaller public companies, whose relatively thin market capitalizations can be more easily manipulated. And in the same way, it threatens the savings and investments of many retail investors in these smaller companies.
There are many legitimate reasons that a trade might fail to settle,
but the extreme abuses that are reflected in securities being
chronically listed on Reg SHO’s Threshold Security List for
months and years at a time is ample evidence that there is also
fraud in the market that needs to be arrested.
Periodically there are reports that following a legitimate purchase
of 100% of the outstanding shares of a microcap company, millions of phantom shares continue to be traded by naked short sellers.
STEVE BITCH GO FUCK YOURSELF MOTHERFUCKER
I WILL KILL YOU AND YOUR WHOLE FAMILY
PUNK ASS
Well, Tony. Let's see what the FBI thinks about your 3d Death Threat here. I will also see if we can get CT to throw in the sexual molestation threat against his daughter so that you goose can be properly cooked.
Only a mentally ill criminal and miscreant would make the threats you have made. You NEED to be taken off the streets as you are clearly a menace and threat to Society!
-Steve
Let's try to remember a celebration tomorrow!
Do some home work on cmkm diamonds inc and tell me nss is not a problem.
How about nss to the tune of BILLIONS OF SHARES in what turned out to be a scam of a company anyway. Does that make it ok ? NOT ! Cert pull proved it, no question about it.
Can anyone tell me if the short seller has any obligation to pay the declared divy. If the sale is "naked" where does the money go? For stocks that pay big divideneds this could be important.
Commenting by HaloScan
