In fact, even the regulations themselves that were established by the SEC seem to encourage naked shorting and you know who benefit the most from these maneuvering paths (Hint: Not the individual investor). They don't make it clear that no shorting is allowed by a market maker or whoever unless shares first borrowed and not just expected to be borrowed. They justify giving such potential to manipulate the market with improving the liquidity in the market. Allowing the selling of nothing as existing shares and reducing the value of shares owned by shareholders in order to offer better liquidity to them? What kind of excuse is that? But again you know who benefit the most from this power to abuse the market.
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