This is one of the reasons why various SH have up-
Post# of 96897
Posted On: 08/27/2015 1:53:44 PM
Re: SilentPartner #29427
This is one of the reasons why various SH have up-talked the NTGL spin-off and share issuance. I'm not sure of the mechanics, but I trust their conclusions that this would expose the Nakeds that existed at the time of declaration (February, 2015 I think).
NTEK only issued x number of shares. NTEK is only responsible to account to x number of shareholders in the open market. NTEK cannot be forced to provide shares of NTGL to 20,000 shareholders representing 20,000 shares of stock if NTEK had only issued and authorized 10,000 shares. The problem is that the real shares do not stand out from the illusions. Once they are an electronic thing they are equal. 100% of the shares I have purchased recently may be illusions, but I do not care and am not forced to investigate.
When the nakeds need to cover, I have no interest in selling them back the shares they created. Buying shares on the open market to allow them to deliver shares to the people they sold to in the past, if done at a time when the market is rising can become a short squeeze.
So what will our stock market force upon all of those shares that were never authorized or issued?????? Theoretically this is the shorts 800 lb gorilla.
Regarding NTEK shares as of 2/15, this should be the market's "Ahah moment" where they wake up and are forced to actually look at NTEK from an enforcement point of view. The same would be true of a complete sale of the company. The new buyer should only have to pay for the Issued shares and account for the unissued shares location.
The theory is that these are events that cause Prime Brokers and Brokerages to force their clients to close short positions. In the ugly past, I don't think they even had the records necessary to enforce this, and when something can't be accounted for the buyers/sellers are forced to deal with it creatively. Our global markets filled with various exchanges and many brokers that are disreputable make the accounting a real headache.
Paul
NTEK only issued x number of shares. NTEK is only responsible to account to x number of shareholders in the open market. NTEK cannot be forced to provide shares of NTGL to 20,000 shareholders representing 20,000 shares of stock if NTEK had only issued and authorized 10,000 shares. The problem is that the real shares do not stand out from the illusions. Once they are an electronic thing they are equal. 100% of the shares I have purchased recently may be illusions, but I do not care and am not forced to investigate.
When the nakeds need to cover, I have no interest in selling them back the shares they created. Buying shares on the open market to allow them to deliver shares to the people they sold to in the past, if done at a time when the market is rising can become a short squeeze.
So what will our stock market force upon all of those shares that were never authorized or issued?????? Theoretically this is the shorts 800 lb gorilla.
Regarding NTEK shares as of 2/15, this should be the market's "Ahah moment" where they wake up and are forced to actually look at NTEK from an enforcement point of view. The same would be true of a complete sale of the company. The new buyer should only have to pay for the Issued shares and account for the unissued shares location.
The theory is that these are events that cause Prime Brokers and Brokerages to force their clients to close short positions. In the ugly past, I don't think they even had the records necessary to enforce this, and when something can't be accounted for the buyers/sellers are forced to deal with it creatively. Our global markets filled with various exchanges and many brokers that are disreputable make the accounting a real headache.
Paul
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