Along with debt convertibles and other sorts of nefarious investment vehicles issued by companies.
I think it's unfortunate that many of the people ranting about "naked shorting" are confusing that with the shorting that results from toxic financing. The latter is a real and very present evil. But the GetShorty crowd won't address the issue for two main reasons. First, many of them don't understand what it is and how it works. Second, to embrace the notion that their stock went into the toilet because of the issuance of toxic paper is perforce to implicate company management, and they can't bear to think that "Horatio" or "The Honest Oil Man" or "Blaggy the Ray of Sunshine" has been deliberately screwing them.
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