Cartoon showing a ‘simplified’ version of how DTCC’s stock borrow program can facilitate/validate naked short selling, and why the new SEC rule doesn’t help the problem.

by
Sharing is Caring!

by TheUltimator5

feel free to sharpshoot the graphics if something isn’t clear. This isn’t easy to understand in any way.

It is hard to depict some things graphically, but I did my best to make this as simple and dumbed down as possible, to allow people to slightly understand the process.

I am sure there are many key elements that are left unanswered, but I tried to get the basic process shown.

See also  History books will write that Joe Biden's pardon of his son marked the start of the stock market collapse.
See also  Wait, what? The White House says the government doesn't have the authority to shoot down drones.

EDIT 2: There is a typo in broker 1. When you sell your shares, you don’t sell them with a borrow. Oops