July 9, 2008
You can't sell something you don't own.
I believe that's a pretty standard rule for the REST of the business world.
Maybe you should try that rule to stop Naked Short Selling...
Why is this SO HARD to figure out...??
If the shares can't be delivered in 3 days, the trade gets reversed.
If a company has 800 Billion Authorized shares, you can't allow brokers to sell TRILLIONS of shares.
(See CMKM Diamonds - CMKX)