My problem with Naked Shorts is that the investor doesn’t OWN them. If he owned them that’s different, but he doesn’t. Naked Shorts can and definitely do lead into major stack manipulation.
In most ways this a moral thing for me. Naked shorts are just like a stranger coming into my yard and borrowing my tools and my lawn mower and using them irresponsibly and then returning them either damaged or broken.
I lost my value and usability of my tools and he got everything out of them with little or no consequences since I didn’t know he was doing it in the first place and now its too late to stop him.
“Naked shorts are just like a stranger coming into my yard and borrowing my tools and my lawn mower and using them irresponsibly and then returning them either damaged or broken.”
You’re trying as hard as you can to make it sound like theft, but fall far short. What kind of idiot lends their lawn mower to strangers? It bugs me to no end, this pretence that freely agreed upon exchanges on the free market are somehow supposed to be stealing. For every short seller, there’s a long buyer. For every guy wheeling with other people’s money, there are those other people who let them do it.
If we’re talking about fraud or force, that’s one thing. But then we call it fraud or theft, not “naked blah blah blah.”