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1
AmericanKulak
2021 Jun 16, 2:37pm
AmericanKulak
2021 Jun 16, 2:37pm
That there can be 600x more short sell positions than all the shares issued is okay, according to Wall Street Backed Mathematicians.
A man brought 100% of all shares outstanding of a penny stock. The following day, massive amounts of trading several times the stock ever issued took place, even though the shares were 100% owned by one person.
https://www.euromoney.com/article/b1320xkhl0443w/naked-shorting-the-curious-incident-of-the-shares-that-didnt-exist
A man brought 100% of all shares outstanding of a penny stock. The following day, massive amounts of trading several times the stock ever issued took place, even though the shares were 100% owned by one person.
> Michigan-based entrepreneur Robert Simpson decided to see what would happen if he bought the entire stock of one company. Using a single broker, within a couple of days Simpson had paid a little over $5,000 for 1,285,050 shares in OTC bulletin board property-development company Global Links. According to Simpson, these shares were delivered into his account shortly afterwards. Yet the following day 37,044,500 Global Links shares were traded on the bulletin board. The next day, 22,471,000 shares were traded. On neither day had Simpson traded a single Global Link share, he insists. And events surrounding Simpson's investments became yet more confusing. Global Links had only ever issued 1,158,064 shares. Simpson had managed to acquire 126,986 shares that did not exist. How he had managed to be sold more shares than were in issuance is exactly the question Simpson hoped his foray would raise.
https://www.euromoney.com/article/b1320xkhl0443w/naked-shorting-the-curious-incident-of-the-shares-that-didnt-exist
2
Misc
2021 Jun 17, 2:09am
If Simpson really wanted to mess things up, he could ask for physical delivery of the shares. Yes, have them in paper form. With no underlying shares in the system, the share price should spike, as the brokers force buy-backs.
It's always possible that the company did/can issue more shares.
It's always possible that the company did/can issue more shares.
3
Misc
2021 Jun 17, 2:57am
If it makes you feel better, the metals markets are even worse than the equities markets.
The system there is short thousands of tonnes of gold and many thousands of tonnes of silver. Unlike shares and fiat currencies, that's something that can't just be created with the push of a few buttons. Sure they can and do change margin requirements on commodity contracts forcing sales, but there are enough positions held without debt. These positions simply cannot be delivered to.
The system there is short thousands of tonnes of gold and many thousands of tonnes of silver. Unlike shares and fiat currencies, that's something that can't just be created with the push of a few buttons. Sure they can and do change margin requirements on commodity contracts forcing sales, but there are enough positions held without debt. These positions simply cannot be delivered to.
We live in interesting times.