NewStream Energy Technologies Group Inc (NSGP)

[trader53]

Naked Short Selling is not illegal !

It is perfectly legal !!!

there is a second and perhaps more effective means of depressing the stock price which is by flooding the market with shorted shares that are naked.

Naked short selling is the act of selling without owning or borrowing shares. Because no borrowing is necessary, naked short selling can be executed faster and in larger volume than the ABCD method of short selling. They might introduce a sizable quantity of shorts for sale, destabilizing the market and driving the price of the stock down.

Usually, naked short sellers have three trading days to borrow the shares backing the shorts. But Regulation SHO of 2005 allowed close-out of fail-to-deliver positions for as long as 13 more trading days.

http://www.wisegeek.com/what-is-naked-short-selling.htm