Naked shorts blog

Only a motivated enforcement agency with subpoena power and an accompanying powerful enforcement infrastructure can prove that naked shorting is at the heart of an extensive stock manipulation scheme. However, I believe that the observational evidence is overwhelming that naked shorting practices are widely used to manipulate the stock prices of emerging biotechnology companies as well as many other small and large companies. Unfortunately, naked shorting is an investment variable that investors must understand if they are going to make investments in the emerging biotechnology space in particular and the equity markets in general. For those like me who are attracted by potentially breakthrough technologies, you will inevitably get caught up in a manipulation that leads to a suddenly plunging stock price of a company in which you are invested. Invariably the scheme starts with and is perpetuated by a flurry of blogs, tweets and message board comments which proclaim that the technology is worthless; management is a band of liars and thieves; and people with a positive view on the Company are being paid by the Company. Then come the lawsuits against the Company and management by the usual group of class action law firms.

What is short selling? You will learn all you need to know about naked short selling in this video from Senior Editor Paddy Hirsch. Adam Hewison. The way this presentation is presented seems to suggest to me that the only reason for banning naked short selling is to give the "Market" a way of monitoring the Shorts on stocks.

Interesting new take on banking JP. But if the Bank of Canada like most corporations owned very illiquid assets, that couldn't be sold quickly, then commercial banks would cause inflation. I don't see the economic difference between short selling and naked short selling and I fear to read the SEC page.

All of this commentary about naked shorts has been entertaining and somewhat informative. None of the comments or emails have changed my mind on how i would invest or perceive the market and its ability to regulate itself. Too many people get religious about stocks. A stock becomes personal to them.