I have a question about naked shorting of stock.There was (is?) a group of like minded individuals who are attempting to put the squeeze on traders who have shorted stock that they have not actually borrowed. I get the idea is to force them to pay an exorbitant price for stock they need to replace the ghost stock they shorted. From what I understand this naked shorting of stock is illegal, so when the price has gone up dramatically is can cost them millions to replace this stock. What is stopping these crooks form just replacing the ghost stock with even more ghost stock. Since they did not actually borrow the stock from anyone, but instead just created counterfeit non-existant stock, then why not just replace it with more ghost stock? Thanks for listening. Hope someone has an answer. Clan
A financial institution or middle man somewhere in the chain will demand secures the contract, collateral and proof that the short seller can cover the trade should things not work out.
