Some analysts point to the fact that naked shorting inadvertently might help markets stay in balance by allowing the negative sentiment to be reflected in certain stocks' prices.
If a stock has a limited float and a large number of shares in friendly hands, then market signals can theoretically be delayed inevitably.
If a large number of shares are in a friendly hand it is called a bad thing and used a justification for naked shorting. Really?
And how many stocks have a limied float and subscribe to this scenario?
I say, don't buy the stock. Easy!
Plenty of of high liquidity stocks out there.
No justification for naked shorting.