Goldman and naked short selling

**Ramirez** · 05-20-2012, 11:24

just when I thought I had heard of every scam...here is another one.

http://www.bloomberg.com/news/2012-0...ling-says.html

Simply put when you go short on a stock, you borrow a certain number of shares from a broker, at a predetermined date you close the short by actually buying the agreed on number of shares ...if the price has gone down you pocket the difference between the price at which you borrowed and the price at which you are paying back the broker the shares.

This assumes of course the broker actually has the shares, naked short selling sounds like Goldman didn't even have the shares but we selling shorts anyway....driving down the price of Overstock.com's stock.

**Erik** · 05-20-2012, 12:59

Send them to prison. Whole chain of command.

**Don Roley** · 05-20-2012, 15:03

Naked shorts have been around for a long time, but no one seems willing to do anything about them. I have seen stocks where the number of shares that were shorted exceeded the amount that had been released to the public. I think it was TASR.

**Abbax8** · 05-20-2012, 16:06

These actions are more in line with what goes on in Reno than what should happen on Wall Street, only Reno is more open about the nature of the business.

Dennis