Does anyone have any feedback on the issue many small public companies are raising about the large positions of naked shorts going uncovered, forcing the companies to fail and allowing those with naked shorts to go forward with their position uncovered, leaving those invested in the naked short positions to realize substantial tax-free gains?
Putting this question in terms of financial planning, does this issue pose any realistic risk to those with investments in funds that pursue naked short positions? Is there a feasible possibility that the SEC or Congress will revise this practice? If so, how should one plan to minimize the downside/maximize the upside?
Thanks for your input, Tim