Where's Naked Short Waldo?

[Hockmir]

Naked shorting is especially injurious to small and startup companies. As you are no doubt aware, companies issue stock to raise capitol for operations and for growth. After releasing an initial number of shares, the company usually retains additional shares in the company treasury, to be sold at a later time when additional funding is needed either to sustain day-to-day operations, or to finance growth and expansion.

The introduction of counterfeit shares into the market through the process of naked shorting renders any and all outstanding shares, including those in the company treasury, to be of diminished value, or valueless. Thus, the process of naked shorting deprives the company of its available funding source.