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  • n. Plural form of short seller.

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  • Traders who bet against a stock. One borrows a stock one does not own, sells it, then buys it back at a lower price, pocketing the difference. A naked short seller is someone who just sells the stock. It was thought this year that there were naked short sellers causing the stocks of banks & brokerages to decline via short selling, so a rule was promulgated to deter the practice of naked shorting.

    August 27, 2008