Anonymous-FVT Comment On Regulatory Notice 21-19
Shares should have a tracking number on them. Trading would be simplified and tracking fraud would be easy to find. Locates also need to be recorded as soon as they are put in use and or taken off the books when finished using...... IN A CENTRALIZED PLACE FOR ALL TO SEE.... As of right now. creating more float than available is a major problem. When the float of a company is held... The price should have skyrocketed through supply and demand. Because you think market makers are important for liquidity, you have now eliminated price discovery. For instance, If a market maker has a short position... they will add liquidity to that stock at the price point that makes them money. Or are we going to pretend that Market makers dont make money.. ok moving on. So because they do that the price never moves accurately, It is always weighted with the opposed opinion to retail... because they are on the other side of our buy.... " adding liquidity". So with that being said. If a stock has more than 100% of the float held. Where is the sell side coming from for any buy over 100% of the float. Next problem would be now that 100% of float is sold. meaning the stock is so rare there are no REAL shares left to buy... price should be astronomical do to supply and demand. But if they are adding liquidity at 100% to keep it so they dont lose the short trade they are in. Well now we have a real problem. Because now you have a market maker suppressing the price of a stock that technically should be so rare people are throwing hundreds of thousands at it just to own one share. Look at berkshire hathaway for a great example of a stock that has not been manipulated by a market maker. Float is mostly owned and price is up around 300k. Makes perfect sense. It also makes sense BH is not manipulated because after all this systemic risk, they will have two places to run. The gov, or warren buffet.