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Online Share Trading

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Naked short selling

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SD
Contributor
Can someone please explain to me how this works? I know you basically sell shares you don't have and without borrowing them. But how exactly?
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9 REPLIES 9
john_1
Super Contributor
Its when you stand outside the girls school and drop your rods, in the hope that it pays to advertise...Its not nice, its not clever and all that usually happens is you get egg on your face...Not that I have tried it myself
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Not applicable
Ill do a video for you...
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SD
Contributor
I guess you don't know what it is then.. Anyone else maybe?
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steve_1
Frequent Contributor
guess not......
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john_1
Super Contributor
Of what exactly? the school, your shorts or the egg on your face.
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john_1
Super Contributor
Naked short selling, or naked shorting, is the practice of selling a stock short without first borrowing the shares or ensuring that the shares can be borrowed as is done in a conventional short sale. In the United States, naked shorting is covered by numerous SEC regulations.[1][2] These regulations prohibit the practice for most investors while making an exception for certain types of large investors designated as "market makers."[3] Nevertheless, some commentators have contended that naked shorting is widespread and that the SEC regulations are poorly enforced, a claim which the SEC has denied. The practice is controversial due to these contentions and other disagreements about its effects and the manner in which it is used. Concern about abusive naked short selling has increased during 2008, and in June the SEC issued a temporary order restricting short-selling of the shares of 19 financial firms deemed systemically important.[4]
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SD
Contributor
So can we naked short sell here?
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john_1
Super Contributor
Definition 1 not definition 2
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Not applicable
Its like that dream you was always having as a kid; standing bare-assed in front of the entire school, but with a package that made the babes laugh, not gasp.
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