Naked Shorting – The Fleecing of the Retail Stock Trader
I’m relitively new to trading in securities. I have stayed in the realm of stocks and options. All the books I’ve read like A Beginner’s Guide to Short Term Trading by Toni Turner have said that you are in a minus sum enviornment when you trade stocks. By the very nature of the size of the money I have to invest I realize that I’m at a disadvantage. But when I saw this video on Google by Bloomberg entitled: Phantom Shares. I realized why my shares of SolarFun Power Holdings Co., LTD. (SOLF) were doing so badly. Naked Shorting is killing SOLF. I went to www.nasdaq.com and found the Short Interest Report to see how badly it was shorted. I also noted that SOLF was put on the REG SHO (Regulation SHO) List on 12-DEC-2007. So what does this all mean? It means the hedge funds and other large players are manipulating the price. The little retail guys like me are getting sheared. So what can I do? I don’t know yet. I’ll let you know when I figure it out.
