[CreditGuy]

The SEC guidance states that underwriters are prohibited from lending shares to establish shorts for the first 30 days, but there is not similar guidance that limits institutional or other investors that obtained shares during the IPO. If it is a naked short position, no shares need be borrowed to establish the short position.

[Chambo]

The SEC guidance states that underwriters are prohibited from lending shares to establish shorts for the first 30 days, but there is not similar guidance that limits institutional or other investors that obtained shares during the IPO. If it is a naked short position, no shares need be borrowed to establish the short position.

My question still stands....since a true naked short is the only investment vehicle out there with unlimited loss potential, what broker or Broker/Dealer in their right mind would allow you to conduct such a trade?

[CreditGuy]

what broker or Broker/Dealer in their right mind would allow you to conduct such a trade?

I'm not trading anything.