In the world of short selling, It's naked short selling that's illegal. It's hard to believe it can even take place. Shares that haven't been issued as actual hard copies, or certificates, are just numbers in a computer(s) and it seems they can be toyed with when not locked in a actual transaction like a sale or a pending sale. The SEC says it's too difficult to stop, but I say that's bull shit. They can stop anything they want to stop, but the question is who are "they"? The shares that are held by investors should be off limits. If a brokerage doesn't actually have shares in their position that aren't owned by other shareholders, virtually or otherwise, then they shouldn't be able to allow short sales period. The crooks run all the way to the top, simple as that, and that is the only reason the SEC can't fix the problem. If the crooks higher up the food chain wanted the problem fixed, money and resources, to include the addition of new or changes to existing laws to support enforcement, would be allocated and crack down after crackdown would take away the incentive.
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