Shareing is winning
21 hours ago
repost from a trader i actually respect! read then study and learn. penny stocks are a whole different monster
bucks2pennies PremiumMember 8:37 AM
Post #22,940
I do not know if any of the posters are viewing the screen I see but my post #22938 was spread across the screen so to not being able to read in its entirety. I copied and pasted the text again below:
Naked shorting is the real issue. Shorts can 'borrow' shares at ANY time and in ANY amount ... it appears. The trick is, where do the borrowed share come from. One would think, the O/S sets the limit. Therefore, the ask reflects the available shares to buy...right? Can't buy anything that is not being offered ... right?
That is where the BS hits the drinking water. That is where the MMs come into play. What happens if even the MM's shelves are bare? They play the "IOUsy" game. They literarily 'sell' borrowed shares to shorts on the basis that will 'eventually' get 'real' shares from a normal day's trade which will be "marked" in some manner shape or form "already borrowed". Get real! Obviously, MMs cannot predict how many shares traders will offer up for sale AFTER they had already sold 'the right to borrow' to some speculative shorty. Holy Crap!