Categories
Investments glossary

Naked Shorting

Spread the love


Quotes of the day:

Stay away from needle drugs. Richard Nixon is the only dope worth shooting.

— Abbie Hoffman

Naked shorting is 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 borrowed, before they sell it short. So naked shorting refers to short pressure on a stock that may be larger than the tradable shares in the market. Despite being made illegal after the 2008-09 financial crisis, naked shorting continues to happen because of loopholes in rules and discrepancies between paper and electronic trading systems.



We uses YouTube API Services.

Click to rate this post!
[Total: 0 Average: 0]

Leave a Reply