In the video below AMC Stock CEO Adam Aron in an interview with CNBC’s Jim Cramer says “So you can’t sell shares that you don’t have, apparently in life you can short shares you don’t have but you can’t sell shares that you don’t have”
What Is Naked Shorting
According to Investopedia: “Naked shorting is the illegal practice of short selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow a stock or determine that it can be borrowed before they sell it short. So naked shorting refers to short pressure on a stock that may be larger than the tradable shares in the market.”
Despite this practice not being allowed to take place, it is still rampant in the markets as of today.
READ MORE: AMC STOCK COULD SHORT SQUEEZE VERY SOON!