A primer on short attacks
April 21st, 2008 · 1 Comment
Some investors don’t know what a short attack is, some still wonder whether it in fact exists, others don’t want you to find out. In short, all you ever wanted to know about short attacks and naked shorting, but were afraid to ask..
Here are explanations of shorting and naked shorting. From the SEC , with a (rather long) frequently asked questions list, and another winding one on interpretation .
The SEC explanations are a bit long, winding, and technical-juridical. If you want something more succinct and accessible, then there is even an instructive video , and a good, much shorter explanation . A very good one is also the one from one of it’s most notorious victims .
There are a few graphic descriptions on organized short attacks on the message boards. We’ve found a couple of useful ones. Here , here , and here .
A really detailed, sourced story of a short attack on Crystallex (KRY) with a source list, don’t miss this one. There is thorough academic work on the subject as well, you can find it here .
Tags: IOC · The Markets