As a corollary to the post on shorting in general, this post will discuss how short selling can and should be used as a way to help mitigate fraud in stocks traded over the counter via the OTCBB, Pinksheets, etc.
At present, Market Makers are legally allowed to naked short stocks since they are required to provide liquidity. I think hedge funds should be able to apply for and/or pay a bond for a license that allows them to do the same thing.
Thoughts...?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.