The GameStop Mess Exposes the Naked Short Selling Scam
LUCY KOMISAR, 25 February 2021
At the House Financial Services Committee hearing last week on the GameStop debacle, there was an elephant in the room: naked short selling.
Short selling, effectively betting that a stock will go down, involves a trader selling shares he does not own, hoping to buy them back at a lower price to make money on the spread. The trader is supposed to locate (or have a “reasonable belief” he can locate) or borrow the shares in brokerage accounts, and then transfer them to the buyer within two days. This accounts for as much as 50 percent of daily trading. Continue reading “Article: The GameStop Mess Exposes the Naked Short Selling Scam”
Nydia M. Velázquez (D-NY) is a committee member of the 116th Congress U.S. House Committee on Financial Services. She is a Puerto Rican-American politician serving in the United States House of Representatives since 1993. Velázquez, a Democrat from New York was the chair of the Congressional Hispanic Caucus until January 3, 2011. Her district, located in New York City, was numbered the 12th district from 1993 to 2013 and has been numbered the 7th district since 2013. In 1976, Velázquez received an M.A. in political science from New York University. She subsequently served as an instructor of political science at the University of Puerto Rico at Humacao from 1976 to 1981. After returning to New York City, Velázquez was an adjunct professor of Puerto Rican studies at Hunter College from 1981 to 1983.
U.S. House Banking Committee on Financial Services