[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.

[PapaBear3625]

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.

Ok, now I understand how we got off the rails. You are describing a regular short sale, where the seller borrows the shares he is selling. A "naked short" is where you sell shares that you plain do not have, and potentially may not be able to cover.