In finance, short selling is a way to profit from the decline in the price of a security by borrowing shares, selling them, buying them back at a lower price, and keeping the difference. The controversial process of naked short selling involves the same steps—except the investor does not first borrow the shares or even determine whether the shares can be borrowed. Critics of the practice say it can be used to manipulate and drive down a stock’s price. Is naked short selling legal? Discuss
Source: The Free Dictionary