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What is the common sense definition of “naked short selling”? I’d be shocked if the median American can even define short selling let alone naked short selling
by dcolkitt 6y ago
What is the common sense definition of “naked short selling”?
I’d be shocked if the median American can even define short selling let alone naked short selling?
- lazyasciiart 6y agoSelling a share without owning it first.
- FabHK 6y agoWell, "having" it first. (Still owned by the guys you borrowed it from).
- lazyasciiart 6y agoI actually mean owning it - I think many people are completely unaware of the concept of borrowing a share.
- FabHK 6y agoYou borrow it, then you have it, but the lender still owns it (and is long one = zero physical, one lent), and you have to return it. You own zero shares (flat = one physical, one borrowed). Then you sell it, and now somebody else has it and owns it (and is long one = one physical, zero lent), while you own minus one (short one = zero physical, one borrowed). Is that not an apter description?