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Revision as of 06:22, 22 June 2005 by 24.187.228.138 (talk)(diff) ← Previous revision | Latest revision (diff) | Newer revision → (diff)(The following is an excerpt from the first page of the book "Naked Short Selling: The Illegal Hacking of the U.S. Financial System" - By Alan Lomax.)
The Naked Short Selling Problem in a Nutshell
Naked Short Selling is the illegal practice of short selling shares that may not even exist. Phantom stocks, ghost longs, and other forms of naked shorts flood the market with unaccounted-for shares, causing a devaluation of the legitimate share price of many companies’ shares. While it is likely that you may have heard the term “naked short selling” or been introduced to this problem, you may not fully understand the jeopardy to which this practice could subject your company. Once you are made aware of the potentially devastating effects of naked short selling and the costs it imposes upon the markets, small businesses, and investors, you will understand why it is an urgent issue that simply cannot be glossed over or ignored. Indeed, there is no more pressing issue than dealing with the failure of our securities system to provide authentic and accountable trading for investors. This scheme deprives companies of their ability to finance themselves and grow, it robs investors of millions of dollars in potential profits, and it costs the U.S. economy untold billions of dollars.