makattack - I disagree this is not a zero sum game at all.
The net result IMO is a constantly falling share price pushed down all the time by the naked short sellers out there selling stock they do not own, and that is actually in custody, and not supposedly available for sale.
When the naked short seller (or covered short sellers) eventually buy it is at a lower level and the lower the better for them. This ratchets the price downwards for all those non short term investors.
IMO naked short selling is purely a technical underhand trick, and is really a manipulation of the market. It benefits a few and harms many - more shares could be sold this way than actually exist, if several naked short sellers promise the same shares, who would know?
IMO naked short selling should be made illegal with heavy fines for those involved. It does not involve a true investment, just a promise of delivery of the shares if required.
OEX Price at posting:
69.0¢ Sentiment: Buy Disclosure: Held
