OTCPK:KRCLF - Post by User
Post by
plezenlightenon Feb 01, 2021 5:23pm
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Post# 32440443
Hindering Naked Short Trades
Hindering Naked Short Trades I saw an article that suggested if enough shareholders of a specific company offered their stocks for sale at unreasonably high prices to prevent them from being used for short trades, it could curtail trading short. The prosperity of modern stock markets depends on short trades because it creates volitility which ultimately result in more trades. Do they really care if playing field is even?Theoretically, if all shareholders offered their shares for sale at a pre-set price, hedge funds & MM's would technically have no shares to borrow, so short trading would cease. Unless, they were naked short trades, which would become much too risky to consider. Any thoughts?