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Stocks Fall as Germany Blocks 'Naked' Short Bets
Wall Street Journal ^ | MAY 18, 2010

Posted on 05/18/2010 11:12:27 AM PDT by nickcarraway

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To: ground_fog

Yup. Good post. Ask any company that has been attacked by shorts with naked short selling. Disgusting.


21 posted on 05/18/2010 1:24:23 PM PDT by Frantzie (McCain=Obama's friend. McCain/Graham = La Raza's Senators)
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To: vikingd00d

Yes, and no.

You can short a stock and you have three days (the settlement window) to borrow the shares to cover the short.

If you’re a market maker, you have six days.

You can still open a short position without borrowing the necessary shares when you open the position.

In today’s computer-driven market, the three day window for settlement is pretty much ‘forever’.


22 posted on 05/18/2010 7:15:17 PM PDT by NVDave
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