We Are In A Cox Fight:We Are in A Cox Fight:The Answer to All Naked Shorts is Simple Have The Stock Before You Sell it? No Delivery you pay three times the price you sold it for--I believe they call that Treble Damages:
There is precedent at Law for this type of fine & you can bet deliver failure with such a penalty would find Naked Shorting gone in a week.
As Cramer said a few days ago lets have a few prosecutions?
All things considered, the poster who has an opposing position actually is a poster who further defines what is being considered here.
Naked Short Selling is illegal. Selling a stock short because you believe the share price is overvalued is not illegal, it is merely an opening transaction on the sell side.
In listening to this poster's thoughts it is apparent that the SEC cannot be a watchdog for just Naked Short Selling with the intention of bolstering the price of every listed security. The guy is right, some stocks should be lower in price than they are with several posters using the naked short scenario to suggest that the stock they own should be higher . . . but for the shorts.
It is an interesting fine line. I do not think that the poster disagrees with eliminating the illegal side of naked short selling and i also sense that if allowed to post he would support the underlying premise of preventing the illegal side of the trade.
Nonetheless, the poster has agreed to remain on the sideline for now but i must tell you, I was impressed by the private message I received and will revisit the scenario with him in the near future.
Send to Cox:
coxc@sec.gov