Series 7: 15.3.3.1. Naked Short Selling

Taken from our Series 7 Online Guide

15.3.3.1. Naked Short Selling

Naked short selling is selling short without first borrowing or arranging to borrow the securities in advance of the sale. This practice is especially risky because the seller may not be able to borrow the security at settlement time. When sellers do not deliver the sold securities to buyers within the two business day settlement period, it is called a “failure to deliver.” Naked short sel

Since you're reading about Series 7: 15.3.3.1. Naked Short Selling, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 7
Please Enable Javascript
to view this content!