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Although controversial, some consider naked shorting performs an essential and constructive market position in value discovery. Due to varied loopholes in the rules, and discrepancies between paper and digital trading techniques, bare shorting continues to occur. Naked shorting is the now-illegal practice of promoting brief shares that haven’t been affirmatively determined to exist. Amanda Jackson has experience in personal finance, investing, and social companies. She is a library professional, transcriptionist, editor, and fact-checker.