naked short selling

Main Entry:  naked short selling
Part of Speech:  n
Definition:  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
Example:  Some contend that naked short selling is not harmful and that its prevalence has been exaggerated by corporate officials seeking to blame external forces for their own shortcomings.
Etymology:  by 2006
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