What is Short Selling?

Naked short selling, or naked shorting, is the practice of short-selling a financial instrument without first borrowing the security or ensuring that the security can be borrowed, as is conventionally done in a short sale. When the seller does not obtain the shares within the required time frame, the result is known as a “fail to deliver”. The transaction generally remains open until the shares are acquired by the seller, or the seller’s broker settles the trade.

source: wikipedia

Recently while trying to understand the stock market, found some fascinating things. Maybe I should pay a visit to the library to borrow more stock market related books.

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