July 28, 2008
Naked shorting puts unbalanced sell pressure on a stock, specially when the float is small. This sell pressure is unfair and could be huge sometime as the amount of "phantom" shares could be of any large amount. Naked shorting could potentially aggravate the precarious financial condition of a company by creating negative psychology, thus, leading to bankruptcy ultimately.
I strongly believe Naked shorting should be stopped immediately to save our companies and the market in general.