>Naked Shorting is illegal.
Unless you're a market maker and thus exempt from the regulation, because your market making function requires buying and selling lots and lots of unsettled shares in order to provide liquidity.
Unless you're a market maker and thus exempt from the regulation, because your market making function requires buying and selling lots and lots of unsettled shares in order to provide liquidity.
https://www.sec.gov/investor/pubs/regsho.htm#_ftn4
You can also look through FINRA's regulations here:
https://www.finra.org/rules-guidance/rulebooks
The wikipedia article on Regulation SHO is also fairly relevant:
https://en.wikipedia.org/wiki/Naked_short_selling#Regulation...
It's pretty long and tedious and not really targeted to your question though. I'll try to remember to post a better resource here when I find one.