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Archive for December, 2014

Dec
13

Naked Short Selling

Naked short selling also referred to as naked shorting is the act of short selling a tradable asset without first borrowing the security or ensuring it can be borrowed as is usually don’t with a short sale. The practice of short selling is the process of selling securities or other financial assets that are not currently own and then repurchasing them. When the price declines the short seller will profit since the cost of the repurchase will be less than the profits from the sale. With naked short selling, the price fall is anticipated but the seller is exposed to

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