An investment technique in which an investor sells shares short before actually borrowing the shares or before determining if shares can be borrowed. The practice is often illegal, but the SEC has allowed its use under certain circumstances. Naked shorting has been attributed as the cause for several instances of market manipulation.
Related information about naked shorting:
- Naked Shorting Definition | Investopedia
The illegal practice of short selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow a stock, or determine that it can be ...
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Naked short selling, or naked shorting, is the practice of short-selling a tradable asset of any kind without first borrowing the security or ensuring that the security ...
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Feb 11, 2012 ... Some firms claim to have been victims of illegal “naked” shorting, where the seller does not arrange to borrow the shares in time to deliver them ...
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Definition of naked shorting: An investment technique in which an investor sells shares short before actually borrowing the shares or before determining if shares ...
- Naked Short Sales
Jul 23, 2010 ... Naked Short Sales. In a "naked" short sale, the seller does not borrow or arrange to borrow the securities in time to make delivery to the buyer ...