'Nak for it' pid='37010' datel Wrote:There is much more than that report suggests. As long as DTC is owned by Prime Brokers there will be direct naked shorting without hedges. Why do Goldman ands others get fined every other year for facilitating the trades? Because it is hugely profitable to the hedgies and the Prime broker. just pay the paltry SEC fine and do it again.How many of you are recieving 20%? NONE!
Yes, I was wondering about that. The article described some of the mechanics of naked shorting (which was the reason for me to post it here) but these mechanics don't involve a net short position so I thought, either this isn't all (that is, all the different ways a naked short position can be opened), or naked shorting isn't the bogey some think it is.
Since I don't have the answer myself I posted it here to provoke some discussion