Re: Alpha Group
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Welcome To the WIN!!! St. Elias Mines HUB On AGORACOM
Keep in mind, the opinions on this site are for the most part speculation and are not necessarily the opinions of the company WITHOUT PREJUDICE
Message: Alpha Group
Good article Ook. Another reminder from those who were not reading the board on the weekend, Sculpin had a very good link to info on naked shorting & paid bashers. Long listen, but very informative (Crime of the Century)!
Naked Shorting:
Naked Shorting
What Does Naked Shorting Mean?
The illegal practice of short selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow a stock, or determine that it can be borrowed, before they sell it short. But due to various loopholes in the rules and discrepancies between paper and electronic trading systems, naked shorting continues to happen.
While no exact system of measurement exists, most point to the level of trades that fail to deliver from the seller to the buyer within the mandatory three-day stock settlement period as evidence of naked shorting. Naked shorts may represent a major portion of these failed trades.
The illegal practice of short selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow a stock, or determine that it can be borrowed, before they sell it short. But due to various loopholes in the rules and discrepancies between paper and electronic trading systems, naked shorting continues to happen.
While no exact system of measurement exists, most point to the level of trades that fail to deliver from the seller to the buyer within the mandatory three-day stock settlement period as evidence of naked shorting. Naked shorts may represent a major portion of these failed trades.
Investopedia explains Naked Shorting
Naked shorting is illegal because it allows manipulators a chance to force stock prices down without regard for normal stock supply/demand patterns.
In 2007, the Securities and Exchange Commission (SEC) amended Regulation SHO to further limit possibilities for naked shorting by removing loopholes that existed for some broker/dealers. Regulation SHO requires lists to be published that track stocks with unusually high trends in "fail to deliver" shares. Some analysts point to the fact that naked shorting, albeit inadvertently, may help markets stay in balance by allowing the negative sentiment to be reflected in certain stocks' prices.
Stock Bashers:
Stock Basher
What Does Stock Basher Mean?
An individual, either acting alone or on behalf of someone else, who attempts to devalue a stock by spreading false or exaggerated claims against a public company. After the stock's price has dropped, the basher, or the basher's employer, will then purchase the stock at a lower price than what he or she believes it is intrinsically worth.
An individual, either acting alone or on behalf of someone else, who attempts to devalue a stock by spreading false or exaggerated claims against a public company. After the stock's price has dropped, the basher, or the basher's employer, will then purchase the stock at a lower price than what he or she believes it is intrinsically worth.
Investopedia explains Stock Basher
This is an illegal activity that can carry significant legal repercussions. The basher is generally paid on the basis of how many lies and negative rumors are spread, which can dramatically affect a stock's value. If an investor believes some of the lies, he or she may sell off the stock at the higher price before it falls. The basher will then purchase the stock and ride out the gains.
This is an illegal activity that can carry significant legal repercussions. The basher is generally paid on the basis of how many lies and negative rumors are spread, which can dramatically affect a stock's value. If an investor believes some of the lies, he or she may sell off the stock at the higher price before it falls. The basher will then purchase the stock and ride out the gains.
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