Here`s a very simple example. Someone tell me where my thinking is wrong -
You call your broker and tell him to buy 10,000 EDIG. He calls NITE (I`ll use NITE since everyone seems to like to pick on them). NITE HAS NO EDIG SHARES. He sells 10,000 to your broker anyway, with the theory being he will buy or borrow them later from someone else. NITE`s account with the DCTC now shows a -10,000 shares of EDIG. NITE never buys or borrows the shares, and DCTC never forces him to. He has naked shorted 10,000 EDIG. How much more simple can it be.
