The Economics of Naked Short Selling
Christopher Culp and J. B. Heaton
Despite the cries of alarm, we believe that naked short selling
is unlikely to have significant detrimental effects on capital markets.
In this article, we will first examine the relevant economics
and regulation, and then argue that, from an economic perspective,
naked shorting is little different from traditional shorting.
PDF (6 Pages): Paper Economics of Naked Short Selling
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