April 3, 2008
Naked short selling, a criminal activity that benefits the few at the expense of the public. There is a strong case that any type of short selling should be stopped. Naked short selling is criminal. Why not counter it with naked buying. Just execute buy orders and tell your broker that you will pay for the shares someday in the future. Go ahead, buy 100,000 shares of any company that you want - it is easy with naked buying.
Bottom line - naked short selling undermines the systematic structure of the markets. It hurts long term investors and companies that access the market to raise capital. The sole reason the market exists is for the public to invest in businesses and for business to be able to access capital.
There is absolutely no circumstance that justifies naked short selling.