Wed, Mar 4, 2015, 8:12 PM EST - U.S. Markets closed


% | $
Quotes you view appear here for quick access.

ModusLink Global Solutions, Inc. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • grlmtano grlmtano Apr 4, 2006 11:04 AM Flag

    13 million SHORTS..........

    what are naked shorts?

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • The illegal practice of short selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow a stock, or determine that it can be borrowed, before they sell it short. However, some professional investors and hedge funds take advantage of loopholes in the rules to sell shares without making any attempt to borrow the stock.

      On Oct 29, 2003, the SEC implemented a new rule to ban naked shorting in order to protect thinly traded stocks that are vulnerable to aggressive short-selling which would cause the stock price to fall. Critics of the new rule argue that if naked-shorting had not taken place during the micro-cap crime wave of the 1990s, such stocks would have climbed even higher before they crashed. Thus, the SEC's action to ban naked-shorting eliminated the only market force against over-hyped, or even fraudulent, small-cap and micro-cap stocks.

    • they are traders that sit at their computer NOT even wearing shorts. Hence naked shorts. IMHO Wink Wink

3.63-0.110(-2.94%)Mar 4 4:00 PMEST

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Vivint Solar, Inc.
NYSEWed, Mar 4, 2015 4:01 PM EST
Wayfair Inc.
NYSEWed, Mar 4, 2015 4:02 PM EST