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Naked short selling consists of persons selling (or colluding with others to sell) massive quantities of stock they neither own nor have arranged to borrow. They do so with the intent to manipulate downward the stock price of targeted companies in order to profit by a repurchase of the stock following the downturn, making tens (or hundreds) of millions of dollars engaging in this illegal conduct. Abusive short-sellers frequently never deliver the stocks they are selling, but rather postpone trade closures indefinitely.
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