Sinner man...

Daughter just left to catch plane for Indy to visit other daughter..

Dads Chauffeur service,delivery boy..etc..springs into action..

Anyway on these share certificates ,,,when you short a stock,you sell shares,and certificates you do not have....

So the broker that you are dealing with ,lends you share certificates from their bunch,which they are holding in their own accounts..for them selves...They are not legally allowed to lend yours out in a tax sheltered account,because they represent the shares showing in your account..

Now that share certificate in your account is registered in your name and has your name on it and a serial number..and what is going to stop this Naked shorting is when the SEC(Securities and exchange commission ) comes in the front door of the brokerage house and instantly freezes the trading activity AND accounts of that company or bank or brokerage or anyone else that is registered and authorized to hold share certificates for others..in TRUST..

THen they start auditing...

First one they ask for is ...I want to see the accounts of Mr.Sinbad..

So they show them...

Now they see you have KXL shares in a 401k...

10,000...

So they then say..I want to see the share certificate for KXL representing 10,000 shares with His name on it...

They pull out the piece of paper and there it is...

So good so far..

Then they see you have another 10,000 KXL in an outside ,unregistered account...

They then say..Where is that share certificate..??

THey go to their share hidey-hole..and ..TABERNAC...!!! no share certificate..!!but there is a slip of paper where the share certificate should be called a Transaction record..

They pull that out and it says ..loaned shares to Joe blow yesterday for short sale...all legal,and accounteded for..because of the Three day settlement date cause to allow the actual share certificate to be transfered physically from one spot to another..

So now Joe has three days to return the shares to the broker,..

so the share price goes down from Joes short selling and he buys more shares to replace the 10,000 that were actually your shares that your broker lend to Joe..to sell...

Now Joe is hoping that the price drops a buck so that he can pick up the 10k KXL a buck cheeper to replace the ones he borrowed..

And the price drops and Joe buys and now returns them to the broker...putting the difference on what he sold them to what he bought them for..in his pocket..

The broker now puts your name on the new share certificate that came from Joe Blow,because the share certificate that was lent out is long gone with someone elses name on it ,but RECORDED EACH time it changes hands ,by serial number through the transfer documentantion and the transfer agent..

Where the cheese gets binding is when the share certificates can not match the transaction records...

And this happens when the broker lends out shares he doesn't have..or are over due on the three day limit..or for what ever reason the share certificates and the trans action records do not balance..

They then line up the brokers and put them in jail for fraud..wire fraud..embezzlement ..dirty sox..and by this time..sticky and stinky undies..and just being doing things that are not legal..

So the share certificates that you can get are in unregistered accounts,and available to you..for a fee to your broker..I allready looked into it..and in my case it is $50.00 a company per account..

But again ,that is on the transaction record held by the bank..When you want to sell that share electronically ..you can't ..!!because the share certificates are in your hands ,not the banks wher the shares are held on account..It will say.."Call the broker" and denigh the sale..So you call the broker...tell him to sell the 10k KXL shares and he says ..OK ..but we can not give you your super good $9.99 trading fee..we have to give you the old style manual trading account fee which is ......let me see.....my calculator over loaded....ahhhhh yes..$179.00 ...and ten cents..!!!!

He now says ..You have three days to deliver the share certificates to us...and you have to do that ,because if you miss that date the law will be coming after you ajnd you won't have any money because the brokerage has frozen all your accounts untill you show up or pony up the share certificates.....

Fun ..Eh..!!

Sorry to bore every one ,but the accounting is where the charges are gong to come from and put a stop to this..

Ask any lawyer ,what is his most important account..??

They will tell you their trust account..!!not their personal bank account...their TRUST account..and it better balance to the penny..or they could end up in jail and loose ther licences and lawyers pointy headed hat and everything..So that is where the Fed is going to catch the bad guys..through their trust account accounting..

Cool eh'''!!