TSX:LSG.DB - Post by User
Comment by
basemetalon Nov 23, 2005 10:32pm
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Post# 9908964
RE: naked short selling is the answer
RE: naked short selling is the answer It seems to me that any company that is going to have to raise capital in the future is "weak", and that includes us ! The lower the price the cheaper the financial institution will cover his shorts from the next financing. There was a time when the market price would be worked HIGHER before a financing; now it is worked lower.
An inventory can be short or long. You don't have to make money on every stock to have a profitable business, especially when selling provides usable cash. Just supplying demand from both buyers and sellers.... the commissions and the spreads.... I wish I had a business like that.
Call it "naked" if you like, but stock is ALWAYS available to borrow for the institution and hedge funds, so in that respect they are not "naked". It seems to me that ALL shorts create "counterfeit" stock. BWDIK.