Naked short selling
You don't hear much about naked short selling as a big issue these days, but it may still be a problem. The New York Post notes the case of Overstock.com, calculating that it has a short position of 6.53 million shares and 5.69 million shares available for trading. Apparently, the NASD, the SEC and the NYSE have recently been conducting audits of brokerages with naked short issues in mind. Eight months ago, new rules discouraging the practice were put into effect. Since then, no penalties have been assessed for naked short selling.
> Here's the New York Post article.
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