WEST PALM BEACH, FL (HEDGECO.NET) – The Senate Judiciary Committee panel has scheduled a review into the short-selling activities of independent analysts and hedge funds for June 28.
The panel is still revising a witness list, but they are overlooking marketers that are involved in short-selling. “Naked short-selling is against the law, and we’re concerned about it,†a spokesman for Sen. Orrin Hatch, R-Utah, a Judiciary Committee member, told Dow Jones.
They have also not invited some major players in the management market, such as Patrick Byrne. Byrne has been vocal in attacking “naked†short sales in which sellers don’t borrow shares before selling, which he says may have destroyed hundreds of small companies while enriching hedge funds and Wall Street bankers.
Patrick Byrne, the head of Overstock.com Inc. is a Salt Lake City-based online discount retailer that has sued hedge fund Rocker Partners and small stock-research firm Gradient Analytics Inc.
Short-selling involves the selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short, it is an advanced trading strategy with many unique risks and pitfalls.
The practice is still legal, though the subject that has caused many headlines and lawsuits alleging insider trading and market manipulation.
Alex Akesson
Contributing Writer
HedgeCo.Net
Email: [email protected]
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com.
