TODAY'S DISCOVERY, TOMORROW'S FUTURE

Creating shareholder wealth by advancing gold projects through the exploration and mine development cycle.

Free
Message: Not Good

Re: interesting (For Rodbuster)

posted on Jul 11, 2008 08:29AM

Roddy_B...

I just finished listening to what the D-Man posted and although it is 30 minutes it is well worth EVERYONE here listening to it and reposting it on every other chat room..It is that important..It deals with how the regulators are going to Slay the naked short sellers and other criminal activity and how the different players ie: shorters ..hedge funds...brokers ...etc fudge the share price to F&*%($ us little guys ..

This should be reposted and manditory to listen too by any investor in the stock market..It is that important...

Here it is again..

http://www.netcastdaily.com/broadcas...

LISTEN TO IT...!!(OR I'll get my granny to put the evil eye on you..!!)



Rod

As for the share certificate issue ..here is what happens..

A company has shares ...

For every share issued it must issue one share certificate or one share certificate with the number of shares it represents embossed on it..ie...if I bought 10000 shares directly from KXL at $3.00 I would send them $30k and they would send me one share certificate with 10,000 shares embossed on it..and it has a serial number on it..

Follow me so far..??

They would then register and account for that number of shares in their share account (The company has an internal share account column on the asset side of the ledger)...who's name is on it(Mine) and the serial number...

Now I have the 10k certificate under my materess in an old hockey sock..they have my $10 k..

The share certificate has on the back of it a place ,blank,to transfer ownership when it is bought or sold by someone else ...

Now the price goes up to $5.oo and I want to sell 5K to Joe Blow..

I contact the company and ask them to cancel the share certificate for 10K and issue me a new one for 5k and a new one for 5 k to Joe Blow...

They do that and now we each have 5 k and two share certificates...The companies shares did not increase,but the share certificates did but to total number remains the same for the issued shares..

But the actual time involved in actually having the share certificates depends on how fast the mail is..because we are not dealing electronically with the transaction..

The time factor is regulated to three trading days for settlement..This is important because you have to have the share certificates to buy and sell..

Say I want to sell the other five through a broker ...I call him up and say ..Sell 5K KXL at $10.00 (The current market price)..

He will say..do you have the certificates?..I'll say yes and he will say "OK"..we will sell those shares fort the $10.. and put the money in your account..you have three days to deliver the share certificates ..the settlement dates..

That happens instantly(Electronically) and I hustle down to the brokerage and deliver the share certificate) two days later...

So there is a time lag where the shares are trading with the certificate in transit and thei is what the short sellers are working on..

Selling shares that they do not have the certificates for hoping they can borrow the shares from another someone to deliver on the settlement date..

The brokerages must track each share AND serial number and this is why you pay the fees..to cover their paperwork..

This is pretty basic and my fingers are sore from a hang nail but each and every share is accountable by the company and the dealers and brokerages and they must always be up to date and the transfer agents are the ones that do this for the industry..they get a cut of the trading fees from each transaction,so basically what this audio play is about is how these share certificates are manipulated..

Worth the listen..

Clear as mud ..eh??

Any more info has to be over a case of porchclimber at the Vegas bash..



Share
New Message
Please login to post a reply