FTD = Failed to Deliver as in failing to deliver shares to the DTCC or phanthom shares. FTD's increase dilution of a companies share structure much more than simply selling the AS into the open market.
Many think NSS is a conspiracy theory. Many OTC companies have been ruined over the years by FTD'S. REGSHO was suppose to take care of the T+3 days delivery but IMO it did little. The rich are still getting richer and the OTC companies with zero funds continue to dilute into oblivion whether by NSS or by the CEO requiring capitol or by the CEO simply being incompetent and blowing through funding. Meanwhile the SEC does little about protecting Pinksheet and OTCBB companies and investors from the scams and share selling schemes.