"Naked short selling" happens when someone sells a share of stock, and then fails to deliver it.

However, there is such a thing as the legitimate short sale. Here, the seller first legally borrows a share of stock, then sells it. The seller hopes to buy it back at a lower price before returning it to the lender. The shorter's profit is the difference between the sale price, and his later buy price. The seller is counting on a decline in price. Sell high, buy low. Short selling is legal as described.

A naked short sale is a manipulative trading technique. It takes advantage of a structural deficiency in the system that allows a transaction to occur, and all moneys to be paid, before delivery occurs.

Our list calculates the date a stock has been added to the list and how many days the stock has been removed from the list. Current stocks on this list are typically depressed. While stock recently removed from the list have a better chance of recovering. Some stocks never recover after being on the list.

One note of caution, while this list is a "best effort" on the part of Wabalaba.com, we cannot guarantee it's timeliness or accuracy. You should not assume that because a stock is not on this list, it is not being naked shorted. This list is provided to you to use at your own risk. Good luck!