pat your back, naked selling.
posted on
Jun 19, 2010 11:11AM
NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)
I know this is getting a little off topic. But it's the weekend, and I don't see much interest discussing the most recent NR.
In US, there's no min trade and $8 to $10 per share. You get free level II, but not with Canadian Stocks like Noront. Does anyone know who, in US, does provide a more indepth Canadian service?
I never do this so I don't know much about it. In Canada do they allow you to do a normal short sell with Noront?
From Wikpedia.
Normal shorting
Short selling is a a form of speculation that allows a trader to take a "negative position" in a stock of a company. Such a trader first "borrows" shares of that stock from their owner (the lender), typically via a bank or a prime broker under the condition that he will return it on demand. Next, the trader sells the borrowed shares and delivers them to the buyer who becomes their new owner. The buyer is typically unaware that the shares have been sold short: his transaction with the trader proceeds just as if the trader owned rather than borrowed the shares. Some time later, the trader closes his short position by purchasing the same number of shares in the market and returning them to the lender.
The trader's profit is the difference between the sale price and the purchase price of the shares. In contrast to "going long," where sale succeeds the purchase, short sale precedes the purchase. Because the seller/borrower is generally required to make a cash deposit equivalent to the sale proceeds, it offers the lender some security.
Naked short selling is a case of short selling without first arranging a borrow. If the stock is in short supply, finding shares to borrow can be difficult. The seller may also decide not to borrow the shares, in some cases because lenders are not available, or because of the costs of lending. When shares are not borrowed within the clearing time period and the short-seller does not tender shares to the buyer, the trade is considered to have "failed to deliver."[13] Nevertheless, the trade will continue to sit open or the buyer may be credited the shares by the DTCC until either the short-seller closes out the position or borrows the shares.[2]
It is difficult to measure how often naked short selling occurs. Fails to deliver are not necessarily indicative of naked shorting, and can result from both "long" transactions (stock purchases) and short sales.[4][14] Naked shorting can be invisible in a liquid market, as long as the short sale is eventually delivered to the buyer. However, if the covers are impossible to find, the trades fail. Fail reports are published regularly by the SEC[15], and a sudden rise in the number of fails-to-deliver will alert the SEC to the possibility of naked short selling. In some recent cases, it was claimed that the daily activity was larger than all of the available shares, which would normally be unlikely.[13]