D-Box Technologies Inc T.DBO

Why is it Possible to Short 140% of a Company's Shares?

[prospector001]

The events surrounding the GameStop short squeeze have brought to full light the ugly underbelly of the institutional/hedge fund short game. News this week that 140 percent of the shares of GameStop had been shorted should send alarm bells ringing throughout the investment community!

How is this possible or even legal?

Hopefully we will get some answers but I highly doubt it since the institutions will be bailed out by virtually limitless QE funding and the losses swept under the carpet in hopes that the "game" will not "stop".

Take Care All

[todumbtothink]

There have been attempts to regulate short sales in the US. There is regulation in place referred to as regulation SHO.   https://ibkr.info/article/240   There are two main features to remember; you need to make sure you can borrow the stock before the trade. Then if the stock is not physically transferred (the loan is duly cleared and the securities transferred), then there is a close

[Loony]

Regulating short sales in the U.S. is difficult when this is your ¨Free Speech¨ media. Biden’s White House Considering Banning Conservative Media from Press Briefings Posted on 1/26/21 at 5:53 pm 871 quote:  President Joe Biden’s press team may move to restrict the briefings held at the White House to liberal mainstream media outlets, if language from

[prospector001]

Thank-you for the explanation! Short selling is one of those fuzzy topics that few people understand - and even fewer people care about. The regulations for short selling in Canada appear to be even looser than those in the US. See Globe and Mail article; https://www.theglobeandmail.com/business/article-weak-equity-market-rules-make-canada-a-haven-for-short-sellers/ I believe that this lack of

[todumbtothink]

Market makers can also naked short and typically that is what they like to do especially at the opening because it does not use the capital of the firm and the capital each market maker is individually allocated. You often see this with US stocks that have many market makers. At the opening especially in illiquid stocks, this can increase volatility and trigger a downward spiral,   For D-BOX