naked short selling can and often does involve selling shares that do not exist.The naked short seller takes no notice of how many shares are in circulation as they believe they can buy the amount they need regardless however if they naked sell huge amounts of a share more than their are in circulation they create problems in that it is the equivalent of a country allowing a forger to print large amount of ther currency i.e. each share is devalued through the amount of share to asset backing being different to that which it was set at. I think that explains it it took me quite a while to get my head around it the video on i think businessjive helped but i have lost the hyperlink
