>> In finance, uncovered short positions happen all the time. Short selling and the options market being prime examples. > > Intentional naked shorting is ill

>> In finance, uncovered short positions happen all the time. Short selling and the options market being prime examples. > > Intentional naked shorting is illegal in most markets, including the US - so, no, they don't. It's illegal for cash instruments - actual shares and government bonds - but not for futures and options.