I just want to say that what follows is a guess an
Post# of 39368
Posted On: 09/01/2014 7:48:49 AM
I just want to say that what follows is a guess and I am not an expert on naked short selling. If a broker lets a naked shorter borrow shares to sell then I believe we have a broker with no real shares for his client and the new buyer now has I guess real shares in his account. So if 1 million shares were borrowed and not replaced then we have 2 owners claiming 1 million shares each and really only 1 million real shares on the books. So when the new stock dividend is distributed how can both receive the dividend when there is only 1 million real shares on the books. Does the broker insist that who borrowed the shares buy back the shares to replace the borrowed shares? Or will there be fake shares on the books of the broker who lent the shares?
And these fake shares will be shares of the new company if they can do this. Again these are thoughts that raced thru my brain and I am not an expert and do not know how the system works. Is there 250 million naked short shares in the market as some have suggested and some who know more about naked short selling than any of us?
Maybe someone can tell us how this works and maybe can there be a run on short covering? We will find out in the future when the new stock is distributed. I hope we see the pps move up tomorrow. Good luck to all us shareholders and go Teco. Have a great day.
And these fake shares will be shares of the new company if they can do this. Again these are thoughts that raced thru my brain and I am not an expert and do not know how the system works. Is there 250 million naked short shares in the market as some have suggested and some who know more about naked short selling than any of us?
Maybe someone can tell us how this works and maybe can there be a run on short covering? We will find out in the future when the new stock is distributed. I hope we see the pps move up tomorrow. Good luck to all us shareholders and go Teco. Have a great day.
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