Naked Short Seller

(redirected from Naked Short Sellers)

Naked Short Seller

An investor who sells shares that he/she has neither borrowed nor made arrangements to borrow. Under Regulation SHO, naked short sellers must abide by a "locate" requirement and a "close-out" requirement. The locate requirement forces brokers to have reasonable grounds to believe that the short-sold security can be borrowed; the broker must document this prior to the security's sale. With some exceptions, the close-out requirement means that brokers who have failed to deliver a short-sold security for 13 days must purchase similar securities and present those instead. Naked shorting is very high risk.
Mentioned in ?
References in periodicals archive ?
Naked short sellers can list an OTCBB or OTCQB traded company on the BBSE in order to delay delivery of shares under the short position.
Shares are often unavailable, however, for securities that are most popular with naked short sellers.
These naked short sellers profit by repurchasing the stock following the downturn.
This unlawful stock manipulation must be stopped to preserve the integrity of our financial markets and provide an honest environment in which public companies can flourish or fail on their own, without the unlawful interference of naked short sellers.
Naked short sellers effectively gain more leverage than if they were required to borrow securities and deliver within a reasonable period of time.
OTC:ETMO) ("Extreme" or the "Company") is appealing to shareholders to participate in an effort management believes will significantly increase shareholder value and create a "share vacuum" for illegal naked short sellers.
SHO list for the last 70 days, indicating naked short sellers have failed to deliver shares on settlement dates in blatant violation of U.
Naked short sellers (shorts that have not borrowed shares correctly) have also reached the 13th consecutive trading day of failure to deliver.
HTDS- Continues to be plagued with naked short sellers and "oversold.
The naked short sellers have deployed a virtual small army of stock bashers to plant doubt with the novice and unsuspecting shareholders to aid them in their task.
This not only serves as a method to combat existing naked short sellers but also as a deterrent to future short selling in the shares of a stock.
We will never allow them to be desecrated by financial parasites, like naked short sellers, stock bashers and manipulators.