#57 Stocks Hit Threshold Securities List Today ((Naked Shorts)) Link-Free#
- From: Veracity Jones <veracity@xxxxxxxxxxxxxxxxx>
- Date: Thu, 31 Jan 2008 09:13:52 -0800 (PST)
While the short sale is a legal – and legitimate – strategy, the naked
short sale is neither legal, nor legitimate. In the case of the
ordinary short sale, the seller legally borrows shares of stock, and
then immediately sells them. The seller’s expectation is that he/she
will be able to buy the stock back at a lower price before returning
them to the lender. The short seller’s profit margin is the difference
between the original value of the stock, when he sold them, and the
price at which he bought them back. He is counting on the stock
declining in value. This practice is legal. Though it works in reverse
of ordinary strategy, it is still a buy low, sell high strategy.
Naked short selling, on the other hand, is illegal and underhanded. It
capitalizes on a structural deficiency in the system as it currently
exists. The problem is that a transaction may occur, with all moneys
paid, before actual delivery of the stocks takes place. In a naked
short sale, the seller fails to deliver the “stock” he sold. They were
phantom shares.
Our list tracks the date a stock was added to the SHO List and the
date it was removed. Stocks on the list are typically depressed.
Stocks recently removed from the list have a better chance of
recovering and increasing in value. There is, however, is no guarantee
the stock will bounce back. Some never do.
http://www.basherbusters.co.uk
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