Comments on: Reg SHO and Naked Short Selling http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/ A site to share my tips, tools, and humble thoughts on the journey to wealth Thu, 11 Mar 2010 08:35:38 -0800 http://wordpress.org/?v=2.8.5 hourly 1 By: Frugal http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/comment-page-1/#comment-2753 Frugal Sat, 21 Apr 2007 14:52:16 +0000 http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/#comment-2753 Moom, When you have stocks in your margin account, they are bought, but can be loaned out. When they are loaned out, it's like they were never bought in the first place, since the net supply/demand of shares is zero. I don't need any margin power, and I have very large concentrated positions in specific sectors. I prefer to buy my shares and KEEP my shares. Moom,

When you have stocks in your margin account, they are bought, but can be loaned out. When they are loaned out, it’s like they were never bought in the first place, since the net supply/demand of shares is zero.

I don’t need any margin power, and I have very large concentrated positions in specific sectors. I prefer to buy my shares and KEEP my shares.

]]> By: Frugal http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/comment-page-1/#comment-2752 Frugal Sat, 21 Apr 2007 14:48:43 +0000 http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/#comment-2752 Mubin Panjwani, I only exchange link with bloggers. The rest is usually paying links. Mubin Panjwani,
I only exchange link with bloggers. The rest is usually paying links.

]]> By: Frugal http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/comment-page-1/#comment-2751 Frugal Sat, 21 Apr 2007 14:46:35 +0000 http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/#comment-2751 Doug, You didn't understand FTD problem AT ALL. FTD is NOT allowed by the stock buyers. They are close to NEVER settled. How can you sell something and don't deliver them for possibly years? It is simply illegal by any standards. But it is allowed by the stock exchange market. Since all prices in a capitalistic society is based upon supply and demand, when you create "infinite" supply through the created phantom shares, and the demand is not infinite, naturally the price of the "good" (or the stock) in the case of FTD can go down to zero. The exchange requires 3 days settlement period for most normal people, but allowed these FTD to go on for YEARS and YEARS. BY manipulating supply/demand, the stock price is naturally lower than it can be. I suggest you studied this problem further at other googled sources. Doug,

You didn’t understand FTD problem AT ALL. FTD is NOT allowed by the stock buyers. They are close to NEVER settled. How can you sell something and don’t deliver them for possibly years? It is simply illegal by any standards. But it is allowed by the stock exchange market.

Since all prices in a capitalistic society is based upon supply and demand, when you create “infinite” supply through the created phantom shares, and the demand is not infinite, naturally the price of the “good” (or the stock) in the case of FTD can go down to zero.

The exchange requires 3 days settlement period for most normal people, but allowed these FTD to go on for YEARS and YEARS. BY manipulating supply/demand, the stock price is naturally lower than it can be.

I suggest you studied this problem further at other googled sources.

]]> By: moom http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/comment-page-1/#comment-2706 moom Mon, 09 Apr 2007 06:05:31 +0000 http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/#comment-2706 I don't know why you'd be worried about people being able to borrow your shares. I only use margin accounts for stocks. I don’t know why you’d be worried about people being able to borrow your shares. I only use margin accounts for stocks.

]]> By: Mubin Panjwani http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/comment-page-1/#comment-2703 Mubin Panjwani Sat, 07 Apr 2007 11:19:48 +0000 http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/#comment-2703 we have many visitors on our blog who are not from india. We can train them about the fundamentals basis of the capital markets, but need affiliates to direct these members to sites who know better of the markets the members speak of. We at GSIFS look to tie up with many people to help the common investors and make life for them easy. We request a cross promotional banner or a link to each others site so we could help bridge the gap of people who need specific info and cant find it on either of our sites. Please do contact us. Thankyou, Mubin Panjwani, Promoter, GSIFS www.gsifs.com we have many visitors on our blog who are not from india. We can train them about the fundamentals basis of the capital markets, but need affiliates to direct these members to sites who know better of the markets the members speak of. We at GSIFS look to tie up with many people to help the common investors and make life for them easy. We request a cross promotional banner or a link to each others site so we could help bridge the gap of people who need specific info and cant find it on either of our sites. Please do contact us.

Thankyou,
Mubin Panjwani, Promoter, GSIFS

http://www.gsifs.com

]]> By: Doug http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/comment-page-1/#comment-2699 Doug Wed, 04 Apr 2007 20:50:39 +0000 http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/#comment-2699 Frugal, I don't see what hte problem is - the show didn't discuss what happens for the buyer, or how these trades are finally settled. It just used standard "hollywood" drama building. All of the companies that were heavily shorted that were listed, including Delta, Overstock, and the like were quite deserving of shorting. What was particularly poor was the suggestion that short sales hurt the company - the equity is already in the business - price of the shares in the capital markets are not an excuse for poor management (as in the case of overstock). If he thinks the shares are so cheap, he should buy them, then demand delivery. The FTD is allowed by the buyers (but if they mentioned this, they would have no story). Its total BS. Frugal,

I don’t see what hte problem is – the show didn’t discuss what happens for the buyer, or how these trades are finally settled. It just used standard “hollywood” drama building. All of the companies that were heavily shorted that were listed, including Delta, Overstock, and the like were quite deserving of shorting. What was particularly poor was the suggestion that short sales hurt the company – the equity is already in the business – price of the shares in the capital markets are not an excuse for poor management (as in the case of overstock). If he thinks the shares are so cheap, he should buy them, then demand delivery. The FTD is allowed by the buyers (but if they mentioned this, they would have no story). Its total BS.

]]> By: Frugal http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/comment-page-1/#comment-2695 Frugal Wed, 04 Apr 2007 09:23:31 +0000 http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/#comment-2695 Dong, I don't put all of my physical PMs at one location to reduce my risk (by diversification). If you have some large amount, you probably should insure it. In any case, I don't have much physical PMs at home right now. When I do, I will worry about those later. Dong,

I don’t put all of my physical PMs at one location to reduce my risk (by diversification). If you have some large amount, you probably should insure it.

In any case, I don’t have much physical PMs at home right now. When I do, I will worry about those later.

]]> By: Dong http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/comment-page-1/#comment-2694 Dong Tue, 03 Apr 2007 16:54:28 +0000 http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/#comment-2694 Are you insuring your gold and silver? I mean to have them delivered you're potentially trading FTD risk for theft risk. I'm not sure if I like the idea of physically holding that much gold and solver at home. Though I do actually think it almost always makes sense to hold some physical valuables just in case (not that I do.) Are you insuring your gold and silver? I mean to have them delivered you’re potentially trading FTD risk for theft risk. I’m not sure if I like the idea of physically holding that much gold and solver at home. Though I do actually think it almost always makes sense to hold some physical valuables just in case (not that I do.)

]]> By: Frugal http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/comment-page-1/#comment-2693 Frugal Tue, 03 Apr 2007 14:59:13 +0000 http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/#comment-2693 The next best choice is probably CEF in my opinion, not GLD nor SLV. The next best choice is probably CEF in my opinion, not GLD nor SLV.

]]> By: Frugal http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/comment-page-1/#comment-2692 Frugal Tue, 03 Apr 2007 14:58:10 +0000 http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/#comment-2692 Yes. Physically to your home. Yes. Physically to your home.

]]> By: Matador http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/comment-page-1/#comment-2691 Matador Tue, 03 Apr 2007 14:04:02 +0000 http://www.1stMillionAt33.com/2007/04/reg-sho-and-naked-short-selling/#comment-2691 What do you mean get your gold/silver delivered? Physically? What do you mean get your gold/silver delivered? Physically?

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