Naked shorting is even more controversial than regular shorting because it seems so improper to sell something that the seller doesn't possess, but again, many academics argue that
naked shorting helps to reduce irrational exuberance.
The SEC further tightened its rules against
naked shorting just hours before Mr.
The SEC needs to make sure that the rules are strictly and aggressively enforced -- both for failures to deliver that occur within the CNS system and outside the CNS system in ex-clearing trades, where, I suspect, there is
naked shorting that makes the object of current SEC concerns look like small potatoes.
This is basically what
naked shorting is all about; selling what you do not own and which you never deliver to the buyer," Mr.
Now that we are experiencing systemic failure, precisely as
naked shorting activists predicted, we should ask the SEC: Why should two corporations alone deserve the protection for which hundreds of other firms have been unsuccessfully clamoring?
Naked shorting shifts out the supply curve, dropping the price.
Our shareholders have expressed fear that our stock is a target of
naked shorting activity," said Armando Russo, President of New Wave Mobile Technologies, Inc.
The
naked shorting of MRDY stocks has been a problem," said Craig Mora, CEO of MRDY.
Was it selected brokers, market makers and other Wall Street interests who wallow their gluttony through the
naked shorting scandal at the expense of ordinary investors?
In addition to the
naked shorting problem, we are also viewing the costly SOX 404 compliance as an anti-small-cap-activity and this is another reason why moving seems like a good idea and also a way of saving money.
Pink Sheets: CSTJ) announced today that they have ordered a NOBO list in an effort to identify any
naked shorting that may be occurring.
Investors' support for cracking down on
naked shorting could play a role in upcoming congressional elections with 38% of investors saying they would be more inclined to vote for a congressional candidate who addresses the issue of
naked shorting.
