April 26, 2007
Naked shorting needs to be stopped. It places retail investors at a distinct disadvantage and results in many small companies going bankrupt or being bought out and controlled by larger inerestes. Dillution of shares results in reduced fair market value of the stock. Also, voting rights are affected. How does an investor even know whether or not he owns a true certificate or just an ftd?
Naked shorting is just the tip of the iceberg. Hedge funds collude together to trade shares back and forth to manipulate the pps and the options markets. They hire consultants or employ analysts who flood the newswires to publish timely articles (often with misinformation) to further manipulate the pps and options market.
Its time something is done to clean up ther market.