[PapaBear3625]

What got me confused was, in posts 87, 96, 103 I thought we were talking about a real naked short, as opposed to a virtual "naked short" which was a byproduct of issuing a derivative.

Could you please go into more detail as to the kind of naked short you are referring to?

[Warlord]

From my understanding a “naked short” is borrowing a stock that one does not own and immediately selling the stock, thus leaving one with a “naked” short position on the stock. It's very possible that people use this term to mean different things. Either form of the transaction, however, is legitimate in and of itself, although, of course, open to abuse in various circumstances.