When you sell your stock certificate, you hand it over to someone who can loan it out themselves.
As a thought exercise, consider that I can borrow your stock and sell it right back to you short. We can repeat this process a million times. 1 million shares short now based on 1 share.
This is not naked shorting because borrowed the stock from you each time with you willingly participating.
As a thought exercise, consider that I can borrow your stock and sell it right back to you short. We can repeat this process a million times. 1 million shares short now based on 1 share.
This is not naked shorting because borrowed the stock from you each time with you willingly participating.