34. Hedge Funds 6: What is Naked Short-Selling?

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Uploaded by on Aug 25, 2010

Normally we refer to short-selling and this is a very common thing that happens in financial markets (and there is another video on this). This video covers the topic of naked short-selling that is sometimes spoken about especially during times of market stress - it was a very hot topic in 2008 and became illegal in a number of countries at that time.

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Education

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Uploader Comments (savingandinvesting)

  • hmm a little bit more. shorting while having an account with a broker assumes that there are stocks to be borrowed and everything happens at the speed of a touch of a button.

    right?

    Don't tell me i've been naked short selling all this time.

  • @shakaama In most retail accounts this is done automatically by the broker although it should also be possible to double-check which stocks are available for borrow. For large hedge funds they have to check with their prime broker or custodian. Hope that helps and you are right in that it can be fairly automatic in most cases and with what I assume are smaller number of shares compared to the number of shares outstanding. Hope that helps, Michael.

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  • hank you for posting your videos for all to see.

  • totally uncomprehesible. naked short selling is selling IOU's on shares you don't own, delaying delivery, or fooling the buyer with plausible paper confirmations

    A change to sell options you don't own to push the price down. A crime in the US and what lead to Bear Sears and Lehmann Brothers

  • Stupid people, naked short sale is not a scam. If you think it is scam, lending money that one does not have and charging interest is also a scam. There is no difference. With that stated, I just want to say that we want to be recognized as a victim, so others will feel sorry for us. That is why we have the system that we have. The END!

    Please do not post anymore, for we, the people, want to be stupid.

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