Selling stock one does not own. Or as I call them "Electronic Phantom Shares."
"Naked shorting" refers to "shorting" a stock for sale without first borrowing it.[1] The risk that one may not be able to then acquire the shares needed to deliver on the sale is a contributing factor to the controversy surrounding this practice.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.