July 25, 2008
I wrote to the SEC about a year ago about naked short selling. At the time I owned shares of stock in three small companies. They are still on the list and another small company the I have shares in has joined the list. They are all NASDAQ stocks. I was told the new law makes naked short selling illegal. Everytime I check the reg sho list it gets longer, so obviously this problems in getting worse.
I have checked the mutual fund holdings of these stocks and for the past two quarters it has been over 100% of the float. I wrote to the NASD to find out how many FTD shares the were in certain equities, but they said it was against their laws to tell me.
Mr. Cox says that naked shorting isn't a problem, but it certainly seems to be. My questions are:
How can I find out how many FTD's there are on a certain stock?
If the SEC is supposed to protect the investor, why does the SEC allow the NASD to keep this information hidden from investors?
How can there be more that 100% of the float in investor's hands?
Does Mr.s Cox's article mean that the SEC is not going to do anything about this problem?