Meaning of “naked short-selling” in the English Dictionary

business-english dictionary

"naked short-selling" in Business English

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naked short-sellingnoun [ U ]

uk us 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.

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(Definition of “naked short-selling” from the Cambridge Business English Dictionary © Cambridge University Press)