Article: The Truth About Naked Short Selling Commentary

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The Truth About Naked Short Selling: Commentary

John Olagues

Investopedia, 25 June 2019

The basic form of short selling is selling stock that you borrow from an owner and do not own yourself. In essence, you deliver the borrowed shares. Another form is to sell stock that you do not own and are not borrowing from someone. Here you owe the shorted shares to the buyer but “fail to deliver.” This form is called naked short selling.

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