August 4, 2008
I firmly believe that naked shorting is occurring on every stock today regardless of what exchange it is listed on. A perfect example of this happening at this time is with Emcore, (EMKR). At this time approximately 52% of the shares are shorted. The major shorting of this stock began in April of this year when Andrew Left of Citron research began writing bad reports on this company.
As all transactions are being done electronically today, there is absolutely no reason to allow more than 3 days for any transaction to be completed. Furthermore, if the shares of any stock are not borrowed prior to shorting, then the transaction should be voided in its entirety.
I firmly believe that if you had not stepped in to squash the naked shorting of the financial sector we would be looking at a very different situation today. If you can stop the naked shorting of the financial sector then you can and should do the same for the entire market permanently.
NAKED SHORTING IS NOTHING MORE THAN LARGE FINANCIAL INSTITUTIONS STEALING FROM THE RETAIL INVESTOR.