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Its process, market impact, and legal considerations Understand how it differs from traditional short selling. Understanding naked short selling “naked short selling is a trading practice in which shares are sold without first being borrowed or otherwise determined to exist,” said harry turner, founder. Discover what naked short selling is, how it differs from traditional shorting, and why it’s controversial
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Naked shorting can contribute to increased volatility in the targeted stock, as it creates artificial selling pressure in the market Therefore, this can result in sudden price fluctuations that may.
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