n.— «Naked short sellers do not have to borrow the stock. Thanks to smart lobbying by certain hedge funds, the rules have been subtly bent to say that “a broker dealer must have reasonable grounds to believe that the security can be borrowed.” The hedge funds are driving a truck through this regulatory gap, and shorting as much stock as they want. A norm has been that they must borrow the stock within three days. But these are smart people; apparently they simply move the position to a different broker-dealer in a practice known as “short-kiting.”» —“Financial panic and short selling” by Tom Byrne Star-Ledger (Newark, New Jersey) Sept. 15, 2008. (source: Double-Tongued Dictionary)

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