Naked Short Selling
Wednesday, November 30, 2005
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Most investors have never heard of "naked short selling" -- a practice where traders sell stocks they don't own and haven't actually borrowed. Some corporate executives and investors argue "naked shorting" manipulates stock prices. Others consider it a technical trading issue. As Darren Gersh reports regulators are trying to figure out why some shareholders are complaining they're losing money to naked shorting.
Related NBR Stories and links
External Links/Articles
- North American Securities Administrators Association
- Securities and Exchange Commission
- Professor James J. Angel
- Overstock.com
The NASAA is the oldest international organization devoted to investor portection. In the US, their fundamental mission is protecting consumers who purchase securities or investment advice, and their jurisdiction extends to a wide variety of issuers and intermediaries who offer and sell securities to the public.
The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
This links to Professor Angel's bio.
The statement issued Nov. 30, 2005 by Patrick Byrne, president of Overstock.com, on the growing problem of naked short selling.
