Difference between revisions of "Naked short selling"

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Naked short selling is short selling shares that the trader has not actually borrowed or that have not been shown to exist. Instead of first borrowing the shares, the trader sells them to a buyer in the hopes she might be able to get the shares later, for a lower price, still making a profit. This practice has been illegal since 2009, yet continues to happen because of loopholes and paper-electronic system discrepancies.
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Naked short selling is [[short selling]] shares that the trader has not actually borrowed or that have not been shown to exist. Instead of first borrowing the shares, the trader sells them to a buyer in the hopes she might be able to get the shares later, for a lower price, still making a profit. This practice has been illegal since 2009, yet continues to happen because of loopholes and paper-electronic system discrepancies.

Latest revision as of 00:47, 7 June 2019

Naked short selling is short selling shares that the trader has not actually borrowed or that have not been shown to exist. Instead of first borrowing the shares, the trader sells them to a buyer in the hopes she might be able to get the shares later, for a lower price, still making a profit. This practice has been illegal since 2009, yet continues to happen because of loopholes and paper-electronic system discrepancies.