“Naked shorting is the illegal practice of short-selling shares that have not been affirmatively determined to exist. Despite being made illegal after the 2008–09 financial crisis, naked shorting continues to happen because of loopholes in rules and discrepancies between paper and electronic trading systems” - Investopedia 2023

“…due to various loopholes in the rules and discrepancies between paper and electronic trading systems, naked shorting continues to happen” - Investopedia 2012

Current Link: https://www.investopedia.com/terms/n/nakedshorting.asp

Wayback to 2012: http://web.archive.org/web/20120709205628/http://www.investopedia.com/terms/n/nakedshorting.asp