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by ZephyrBlu
1968 days ago
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> It has to not only exist, but be obtainable "Naked shorting is the illegal practice of short selling shares that have not been affirmatively determined to exist" - https://www.investopedia.com/terms/n/nakedshorting.asp > that extra 40% will fail to deliver, because those shares don't exist This is not true because all shorts don't have to be covered simultaneously. > The SEC actually keeps a list of trading companies with high rates of failure to deliver as a means of detecting naked shorting Funnily enough, $GME had very high failure to deliver rates in December [0] but this is not necessarily due to the short interest. [0] https://www.reddit.com/r/wallstreetbets/comments/l97ykd/the_... |
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