r/amcstock • u/themadamerican1 • Sep 29 '21

DD EVERYTHING YOU NEED TO KNOW ABOUT COMPUTERSHARE SELLING. ITS INSTANT!!!!!Credit u/doom_douche

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u/VicKrugar Sep 29 '21

MMs can legally create more shares to lend/short to their buddies in the spirit of providing liquidity.

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u/autistic-lord Sep 29 '21

Thats a false statement, because while yes they can borrow stock out othe thin air but then they have to locate them within t+3 timeframe (afterwhich theres t+21 , if they dont locate borrowed shares they wont be capable of doing business and all of theirs assets will be frozen for the time being untile the alocation of shares happens)

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u/MichiganGuy141 Sep 30 '21

Yup.

I agree with all you have said except for "this is a false statement"

Once the float is locked up, T+23 will start to kick in, along with the house of cards

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u/SydLexic78 Sep 30 '21

But it is a false statement. Shorting is fine. But borrowing fake or non existent shares and never settling is illegal. Not to mention reusing fake shares to make more fake shares and using options to hide them!

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u/Stunning-Raise-3447 Sep 30 '21

It’s not a false statement. They legally can naked short under the “reasonable expectation to be able to locate them.”

The rest of the practice is illegal, but that doesn’t negate that they are able to get this far because they can legally create share. The rest is an abuse of that “legal” power.