SEC Bans Naked Short Selling Permanently

07-28-2009 • arclein

Before someone wishes to tell me that I am wrong, I want someone to explain when was the last time they received a fee for lending stock to anyone. And believe me if you have stock lodged it generally can be lent, especially if you have a margin account. Even a trivial debt is enough to supply a whole portfolio. Naked short selling avoids all the niceties. The trader sells short and forgets about it. If the price rises it then can get dicey, but he is packing several positions to play around with.