Naked shorting is the illegal practice of short selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow.
Naked short selling, or naked shorting, is the practice of short-selling a tradable asset of any According to data compiled by the SEC and Bloomberg, naked short selling of the shares of Lehman Brothers may have played a role in the North.
Normally, when one short sells a stock, their broker will lend them the shares to sell. The loaned stock will come from the broker's own inventory, from another.
Naked short selling or naked shorting is an illegal stock trading practice, in which investors sell a particular stock which they do not possess and can not borrow.