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/biz/ - Business & Finance


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27111664 No.27111664 [Reply] [Original]

I read somewhere that short sellers were able to do what they did because the brokers opened a "virtual long position". Wouldn't this be a form of counterfeiting a stock? Doesn't issued stock have to be registered with the SEC? And if so, why are they allowed to counterfeit security shares to allow for borrowing? Isn't counterfeiting covered by RICO because this is a means of market manipulation by borrowers and issuers to suppress a security's price?

I don't care what kind of special lingo they use, if you're creating "virtual" long positions, you're creating fake shares to be sold; i.e. counterfeiting securities that aren't registered with the SEC.

Anyone else notice this?

>> No.27112270
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27112270

>>27111664
And what I mean by "do what they did" is borrow more than 100% of available shares. Anything over 100% has to be counterfeit, no?