March 18, 2008
I have invested a lot of my savings to a company, LDK Solar. Since last December, LDK has been beaten to less than 1/3, mostly by naked shorting. LDK has been listed on the REG SHO for over 100 consercutive days with over 8.3 Million shares shorted, which means about 25% of overall float belong to naked shorting, since its shares available to the public are less than 35 million.
It's illegal to do naked shorting. Please correct me if I'm wrong. So why does the SEC still allow this illegal practice to go on, which effectively dilutes the pool of available shares and costs a great fortune for the small investors like me and millions others? How could SEC ignore this but just let counterfeited shares be created and the only gainers are those hedge funds and MMs whose job is simply to ruin this great country?
Will the SEC monitor this and correct this problem, send whoever guilty to jail, and do their regulatory job as they should? Not only should hedge funds and MMs be subject to fines but also held liable for share holder loses caused by their illegal actions.