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English definition of “naked short-selling”

naked short-selling

noun [U]
 
 
( also naked shorting) FINANCE, STOCK MARKET
a form of short-selling without first borrowing any security or making sure it can be borrowed, sometimes with the result that the seller never owns the shares, bonds, etc. that the sale is based on. Naked short-selling is often used as a way of bringing down share prices, and is illegal in some countries. →  See also short selling
(Definition of naked short-selling from the Cambridge Business English Dictionary © Cambridge University Press)
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