Fred Swartz

Naked-Shorting Datapoint of the Day, Carl Icahn Edition

"Naked shorting" in the real world isn't the least bit uncommon or illegal. When you buy something that isn't in stock, the company you buy it from has created a naked short. Usually they know they can cover it quickly, especially in this just-in-time economy. You might say their motivation is different than the sell-high-buy-low hopes of those using financial instruments, but it's still naked shorting.