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Old 01-27-2018,
AdellDiede AdellDiede is offline
Join Date: Jan 2017
Posts: 0
Default Combat naked short selling!

in the past on this board i have often chimed in regarding the process of selling short keeping the market healthy, and the consequences when this process is abused. make no mistake, naked short selling is a plauge upon global economic development. as a small time retail trader, i have little recourse other than preaching on message boards, and trying to safe guard my own money. and then, eureka, i found it:
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Old 01-28-2018,
AdelePeter AdelePeter is offline
Join Date: Jul 2017
Posts: 0

a subtle defense that investors have traditionaly employed was to request the actual certificates of shares they own. this prevents their broker from loaning at least their small portion, and hopefully reduces the possibility of ftd accumulation.

hopping in and out of stocks sometimes in minutes, this has never been a pratical solution for my situation. and then a beautifully eloquent solution was presented to me: place limit sells on your position well above reasonable market value. your broker must honor your position, and will be less likely to loan out your shares. you take no risk (other than failing to renew monthly, perhaps) and HELP COMBAT NAKED SHORT SELLING!
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Old 01-28-2018,
AdelineCar AdelineCar is offline
Join Date: Oct 2017
Posts: 0

my miniscule day orders wont add up to a hill of beans, but if this was practiced, say like recycling aluminium cans, i think it could add up! maybe someone knows why this would not work?
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Old 01-29-2018,
AdelaideMa AdelaideMa is offline
Join Date: Dec 2017
Posts: 0

I always put an absurdly high limit sell price on my positions...you never know when something crazy is going to happen, especially with energy stocks.
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Old 01-30-2018,
AdelaideCh AdelaideCh is offline
Join Date: Jun 2017
Posts: 0

The U.S. stock markets face a crisis, due to the failure of market participants (brokers and hedge funds) to deliver shares of stock they’ve sold. Because of the structure of the market system, sellers can process transactions, get paid, and then fail to deliver stock to the buyer, essentially refusing to make good on their sale. This creates an environment where investors pay money for their “buys†and yet don’t get their stock – and their brokers don’t alert them when it happens, as they would then have to break the trade, and refund the commissions. Instead, the broker places a marker in investor accounts, an IOU, which is represented to the investor as the genuine article. This is fraudulent, and badly skews the supply/demand equation investors rely on for fair valuation of their holdings. There are rules against all this, but they are rarely enforced, and there are numerous loopholes, with virtually no penalties for violations.
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Old 01-31-2018,
AdelaBatte AdelaBatte is offline
Join Date: Apr 2017
Posts: 0

The current regulatory scheme allows market participants to advertise for sale, and sell, shares of stock which they don’t have, and may have no intentions of delivering. This creates an environment where investors and companies are at a disadvantage, as supply can be created virtually at will, overwhelming any demand, and leaving buyers without the property they paid for: genuine shares of stock. Delivery failure deprives investors of the rights of the genuine article: the right to vote, the right to preferential dividend treatment, the right to legal recourse against the issuer, and basic property rights. Additionally, it allows those failing to deliver to depress the price of targeted stocks, depriving investors of fair valuation for the property they paid for, but never received.
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Old 02-03-2018,
admin admin is offline
Join Date: Dec 2010
Posts: 988

It is time to end the abuse of investors and issuers at the hands of larcenous participants who refuse to deliver what they were paid for. The retirement savings of a generation are at risk, as is the presumption of the integrity of the market’s essential function; namely, an auction system where money is exchanged for genuine shares of stock, which are promptly delivered, and are priced according to legitimate supply and demand.

That is not how the markets currently operate, which places the entire system in jeopardy. The U.S. equities markets require immediate reform if investors are to have any faith in the markets’ integrity. There is already a marked slowdown in U.S. IPOs, and a troubling reduction in world capital moving into the U.S. markets. The trend is clear, and is not promising – issuers are migrating to safer and more hospitable markets, and investor dollars are following them. This is the inevitable result of widespread awareness of the U.S. markets’ inequities.
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