Post by
Oregonduck on May 25, 2021 10:48pm
It is Illegal
SEC and IIROC prohibit the shorting of an issuer stock on pre-announcement of an impending private placement by people in hold of such inside information. For instance, RECO went as high as $10.90 before the private placement - at a discount - $9.50 was announced.
The regulators also prohibit the shorting of stock, post-announcement, from shares obtained through private placement. That would constitute “wash trading”. Any shorts must be covered by purchases in the market.
The total shorts at 2.5 million have more than tripled.
Comment by
derpa on May 26, 2021 2:57am
So what exactly is your point? That something that is illegal has taken place in the case of Reco? Since you are so educated with all matters related to short-selling how about explaining to the board how naked short selling takes place? And specifically how some US brokers facilitate this illegal practice by not asking for delivery of shares?
Comment by
LandCruiser1983 on May 26, 2021 10:24am
IMHO all this talk of "short attack" is overblown. Look at the volume last few days. Low. A short attack generates large daily volume. This is not, at present, happening now. Just my opinion but what do I know? I am very bullish on RECO .