Since the stack market is meant to operate on the principals of supply a demand. I believe that synthetic share creation through naked short selling or naked options needs technical controls enacted to prevent. Policy controls appear to be largely ineffective give the number of cases for violations listed on SEC.GOV. Given we can buy and sell shares and options why isn’t there simply an exchange instrument that represents a borrowed shares that tracks share available to borrow and stops when the limit of outstanding shares is met.
Marshall Fritz Comment On Regulatory Notice 21-19
Since the stack market is meant to operate on the principals of supply a demand. I believe that synthetic share creation through naked short selling or naked options needs technical controls enacted to prevent. Policy controls appear to be largely ineffective give the number of cases for violations listed on SEC.GOV. Given we can buy and sell shares and options why isn’t there simply an exchange instrument that represents a borrowed shares that tracks share available to borrow and stops when the limit of outstanding shares is met.