Summit 1,

You summarized nicely the "Naked" Short Selling problem with your comments:

"I believe that in Canada they are legal to sell "naked". That is

they do not have to actually produce the shares other than indicate that they intend to provide them sometime. By this time they have repaid the account with shares purchased at a lower price. This effectively dilutes the share pool and if they can drive the price down far enough and long enough, and a company folds, they walk away without having to replace anything and keep the proceeds tax free."

It seems that" Naked" Short Selling regulations differ in the U.S.and Canada, and even between brokerages, and also various Exchanges. Very confusing indeed...

Is this a simple answer?

As it is, if you are NOT on Margin and don't owe your Brokerage anything, your shares cannot be sold short, period. If you are on Margin, why not ask your Broker to open a second account which is not marginable, and transfer your NOT shares to this account? If we all did this, there would not be any NOT shares available to the Shorters.

Am I missing something?! Please correct me, if so.

Cheers,

jacki79

NOT: THE GREATEST STORY NEVER TOLD...(yet)