Not true. Apparently if naked shorting were illegal and it were going on, don't you think by now it would have been exposed? Now, if you'd like to say that naked shorting gives an unfair advantage to those who control the market and some regulations should be put into effect, you might be closer to the truth. Even closer would be, venture capitalists are loaning money to companies in exchange for shares which can then be shorted against thus driving down the share price and regulations should be put into place to curb this activity.
Of course, this post will probably be deleted before people can read and learn from it.
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