The naked shorted shares don't exist on the company books. The shortfall is between the Short Seller and his broker. The seller has to settle up with the broker or buy shares on the open market to replace the shorted shares. Usually you can short stocks by borrowing them from your broker and then selling the shares with the idea of replacing those borrowed shares with shares bought on the open market at a price lower than what you sold the borrowed shares. Pink sheet stocks are not stocks you can short in this country. In other countries it may be possible!
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