When we buy shares our brokerage firms are suppose
Post# of 72447
(Total Views: 169)
Posted On: 06/08/2017 9:43:00 AM
When we buy shares our brokerage firms are supposed to insure good delivery.
Good delivery equates to cert backed shares in our accounts. If not they are supposed to buy in those shares from the open market. Truth be told they don't do it so they are not living up to their fiduciary duty. Each brokerage firm is supposed to have shares representing the cumulative total of all their clients on deposit at the DTCC. It gets complicated but as I understand it real shares are borrowed multiple times by several different firms compounding the problem.
In addition offshore hedge funds sell shares they do not own and have no intention of ever buying. They tend to target the OTC but have branched out into fully reporting listed stocks. Take a look at BABA this morning and no doubt there are still shorts in REGN both legal and naked. Apple has schooled the shorts several times that I am aware of. Naked shorting is being done by Hedge Funds and some major respected companies who will deny any knowledge of it if caught. It needs to be banned in the US as was done in Europe and done here to protect the financial companies from abusive naked shorting in 2008 https://www.sec.gov/news/press/2008/2008-211.htm
Sadly the regulators and most politicians have been captured.
When CTIX inks a deal generating a tidy sum of cash we should be able to uplist causing institutional investment. The uplisting and the investors will help make it riskier to short our stock,
Last but not least, lets say you have air shares in your account that you paid $1.00 per share for and needing some cash you sell 1000 of you shares at say $20.;00 per share. Your brokerage firm is going to be out $19,000. unless they have recourse to the party they purchased those shares from.
Risky business but very profitable for the criminals involved. Go CTIX!!!
Good delivery equates to cert backed shares in our accounts. If not they are supposed to buy in those shares from the open market. Truth be told they don't do it so they are not living up to their fiduciary duty. Each brokerage firm is supposed to have shares representing the cumulative total of all their clients on deposit at the DTCC. It gets complicated but as I understand it real shares are borrowed multiple times by several different firms compounding the problem.
In addition offshore hedge funds sell shares they do not own and have no intention of ever buying. They tend to target the OTC but have branched out into fully reporting listed stocks. Take a look at BABA this morning and no doubt there are still shorts in REGN both legal and naked. Apple has schooled the shorts several times that I am aware of. Naked shorting is being done by Hedge Funds and some major respected companies who will deny any knowledge of it if caught. It needs to be banned in the US as was done in Europe and done here to protect the financial companies from abusive naked shorting in 2008 https://www.sec.gov/news/press/2008/2008-211.htm
Sadly the regulators and most politicians have been captured.
When CTIX inks a deal generating a tidy sum of cash we should be able to uplist causing institutional investment. The uplisting and the investors will help make it riskier to short our stock,
Last but not least, lets say you have air shares in your account that you paid $1.00 per share for and needing some cash you sell 1000 of you shares at say $20.;00 per share. Your brokerage firm is going to be out $19,000. unless they have recourse to the party they purchased those shares from.
Risky business but very profitable for the criminals involved. Go CTIX!!!
(2)
(0)