Wednesday, February 26, 2014 3:24:20 PM
http://www.investopedia.com/terms/n/nakedshorting.asp
Definition of 'Naked Shorting'
The illegal practice of short selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow a stock, or determine that it can be borrowed, before they sell it short. But due to various loopholes in the rules and discrepancies between paper and electronic trading systems, naked shorting continues to happen.
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