2008/7/7 Stephen Streater <sbstreater(a)mac.com>om>:
As for naked short selling, it is simply selling shares you don't have
in your possession.
Strictly speaking, naked short selling means selling stock which you
don't possess *AND* haven't arranged to borrow.
Sellling shares you don't have in your posession is simply a
definition of short selling. The SEC's Regulation SHO requires
broker-dealers to document the "locate" they have performed prior to
selling the shares. This is the steps the broker-dealer must take to
ensure that he will be able to borrow enough shares to fulfill the
sale.
http://www.sec.gov/spotlight/keyregshoissues.htm