Naked short selling explained.....
posted on
May 30, 2018 11:38PM
I know from regular conversations I've had going back years with retail investors, that many can't wrap their head around the concept of simple short selling, to say nothing of the slightly more involved concept of naked short selling.
To me that would be inconveivable, to risk any sizeable sum self directing investments without understanding the nuts and bolts of how the market functions. I would liken it to strapping on the skates to play hockey without understanding what off-side or icing is, in addition to penalties like holding and tripping.
I've ridden horses before, and played a little bit of croquet, but I wouldn't venture to mount a steed and engage in a competitive Polo match with money on the line.
Here's a wiki definition of "naked short selling" and the link:
Naked short selling, or naked shorting, is the practice of short-selling a tradable asset of any kind without first borrowing the security or ensuring that the security can be borrowed, as is conventionally done in a short sale. When the seller does not obtain the shares within the required time frame, the result is known as a "failure to deliver". The transaction generally remains open until the shares are acquired by the seller, or the seller's broker settles the trade.
https://en.wikipedia.org/wiki/Naked_short_selling
Naked short selling is manipulation on steroids in my opinion. And again, its why I am of the opinion that even if Don had done everything perfect in terms of communicating with the market, that the PPS would still be in and around where it is right now regardless. Those who have been shorting RVX have gone so far as to short shares they can't even locate or deliver.
Why is there such an effort being put forward to hold the PPS down? That, in my opinion is what is happening.
Why? I think we may have the answer when top-line data comes out, because a spiking share price can bring on feelings of bullishness as the herd gets an acute case of FOMO. And if BETonMACE ultimately succeeds Fear of Missing Out imo will have been 100% justified.
Night all.