What is Naked Short Selling?

Submitted by Sharemarket News on 14 April, 2011 - 18:11

Learn about naked shorting.

Naked short selling or naked shorting is the illegal practice of short selling nonexistent shares or shares the seller does not own. The security is not owned by the seller, but it is promised to be delivered. In general, traders must borrow a stock before they can sell it short, however, loopholes in rules allow naked shorting to continue to happen.

More about

Recommended Websites