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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?


To: Rocket Red who wrote (124643)7/22/2008 7:34:58 AM
From: tyc:>  Read Replies (1) | Respond to of 313992
 
>>Generally, brokers "locate" shares available to borrow that are then borrowed at the settlement of the trade -

SO.... the "borrowing" is done at the time of settlement of the trade, not at the time the sale is executed. Nakedness occurs when there is no stock available to enable settlement.

So there is no such thing as a naked short sale.... only inability to settle, which should trigger a buy-in if regulations were enforced.