RE:RE:RE:RE:RE:RE:Hedge FundsAmen Tdon, and to think that this practice has been going on unchecked for decades, shows what influence the big guy has and how incompetent the regulators really are. Oh wait, maybe they're on the 'gravy train' so to speak, not unlike the whole FDA world...
tdon1229 wrote: wood56 wrote: pjecan wrote: Naked shorting is illegal in the US but legal in Canada ! Go figure.
The hedge funds have also engaged in naked shorting, selling short more shares than they control. In this case, they've shorted some 40% more shares than all those outstanding. Such naked shorting is illegal, but it's often overlooked by regulators.
I for one cannot think of a good reason why "it's often overlooked by regulator$"
Would it help your understanding to know that the first Chairman of the SEC was none other than Joseph P. Kennedy, previously notable for being a major purveyor of whiskey across the border from Canada to illegal distributors and eventually to thirsty drinkers in the US during Prohibition?
His earnings in that endeavor helped him become established as a financier and Wall Street investor. President Roosevelt turned to him to reorganize trading so that investors could have confidence, return to market investing, and renew economic growth. His commissioner set the rules, shaping them to favor his friends.
If you are a member of the privileged group and know the secret handshake, you can do some things that will be overlooked and under regulated.