By Graham Hayday, 18 July 2001 09:05
NEWS Redstone Telecom investors have called on the London Stock Exchange to investigate short selling in the company's shares.
Short selling involves brokers selling shares they don't own in the hope of buying them back at a lower price in the future.
The Redstone Action Group (RAG) claims that investors who bought shares prior to last week's emergency meeting cannot exercise their voting rights in the decision to issue 2.6bn new shares, because they have yet to receive their share certificates.
According to The Times, the RAG believes the company's stock has been short sold and alleges that some market-makers in Redstone shares have been unable to deliver investors' stock for the last month.
The result, RAG claims, is that there have been "severe shortages" of Redstone shares, which yesterday fell to just over 2p, down from an all-time high of 949p.
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