Why naked short selling has suddenly become a hot topic

Short selling can be controversial, especially among management teams of companies whose stocks traders are betting that their prices will fall. And a new spike in alleged “naked short selling” among microcap stocks is making several management teams angry enough to threaten legal action:

Taking a long position means buying a stock and holding it, hoping the price will go up.

Shorting, or short selling, is when an investor borrows shares and immediately sells them, hoping he or…

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